What happened when malware became more sophisticated and able to change its own file content?

Less sophisticated malware was still able to evade classic signature-based scanning.
One new type of malware was detected per year, resulting in the growth of the malware family.
Malware signatures did not change, and it was not able to sneak by older antivirus products.
A single type of malware did not multiply and no bad behavior was detected.
A single type of malware became an entire malware family, consisting of perhaps thousands of different files, but each file performing the same bad behaviors.

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