A fundamental issue concerning development of the vertebrate retina is the relative contributions of extrinsic and intrinsic cues to the determination of cell fate. Recent findings suggest that retinal progenitors go through a series of changes in intrinsic properties that control their competence to make different cell types and that extrinsic cues influence the ratios of the cell types that they produce. Recent studies of the role of the basic helix-loop-helix genes in retinal development have indicated that they can regulate competence and/or other aspects of cell fate determination.