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Captive product pricing

Captive product pricing— setting a price for products that must be used along with a main product, such as blade for razor, games for a videogame console and printer cartridges. Producers of the main products often price them low and set high markups of the supplies. For example, when Sony first introduced its PS3 videogame console, priced at $499 and $599 for the regular and premium versions, it lost as much $306 per unit sold. Sony hoped to recoup the losses through the sales of more lucrative PS3 games.

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