Price Skimming: Definition, Strategy, and Examples Feedough

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While Sony is celebrated for its TVs and smartphones, we can observe price skimming approach in action on their gaming console lineup. Take Sony’s PlayStation 3 console as an example – it was in the beginning introduced at a cost of $599 because it definitely had no competitors and was deemed to sell since their past console, the PlayStation 2, was a huge hit. But while the PS2 was conservatively priced, the company knew that there were a lot of skills buyers for the PS3 and hence set a stronger preliminary launch price. The price of the PS3 was then reduced every passing year and at last reached $299 during the year was discontinued.

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