When Microsoft introduced the Xbox videogame console in 2001,the company priced it at $299,exactly the same price as Sony's PlayStation 2,the market leader.Identify this pricing strategy.

Question

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Microsoft used competitive pricing strategy by pricing the Xbox at the same level as Sony's PlayStation 2, which was the market leader. This was done to establish a foothold in the market by offering a similar product at a similar price to the competition.

When Microsoft Introduced the Xbox Videogame Console in 2001,the Company