This can't be right though, because IE always had updates too, via Windows Update. Although they weren't as frequent as Chrome's
The answer of why IE hung around for so long probably has to do with corporate intranets and Microsofts huge enterprise customers needing to preserve backwards compatibility. Backwards compatibility is one of Microsoft's strengths but with IE it became a weakness for them.
The answer of why it lost to Chrome is that Chrome was a very strong entrant in the battle from day 1 of its release. Remember the Chrome launch comic? https://www.google.com/googlebooks/chrome/index.html