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Just a few years ago, IPS-based monitors were primarily used by professionals who require accurate color reproduction, such as photographers and designers. Considering that this technology was (at the time) much more expensive than the twisted nematic variety used in regular consumer monitors, accurate color reproduction was also the all-encompassing focus of these displays.
Gaming, for example, was never the purpose of these expensive computer monitors, so it is a reasonable assumption that not much time was spent on developing displays with the much shorter response times required by gamers.
Those who still remember when the first LCD monitors arrived on the market will also recall that the prices were ludicrously high and that even then, the panels did not cope with very well with games. Although subsequent LCDs mainly employed TN panels, they were still much slower than their predecessors, the archaic cathode ray tube (CRT) monitors.
As we now know, the large and heavy CRT monitors were nevertheless rapidly replaced by their thin-and-light LCD counterparts - not for being visually superior but simply for being lighter and more attractive. When demand for LCD monitors skyrocketed in spite of their higher prices, the simple market economy principles saw to it that more producers got onboard, that the overall quality improved (including better response times) and that the prices became highly competitive.
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