In species with highly differentiated sex chromosomes, imbalances in gene dosage between the sexes can affect overall organismal fitness. Regulatory mechanisms were discovered in several unrelated animals, which counter gene-dose differences between females and males, and these early findings suggested that dosage-compensating mechanisms were required for sex-chromosome evolution. However, recent reports in birds and moths contradict this view because these animals locally compensate only a few genes on the sex chromosomes, leaving the majority with different expression levels in males and females. These findings warrant a re-examination of the evolutionary forces underlying dosage compensation.