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It's clever sales strategy: sell a weapon for $1, sell the ammunition for $1000.

Most commonly known as the razors and blades model.

Slightly modified, since microsoft is the sole gatekeeper of which software can be run on their heavily subsidized (anti competitive) hardware.

Have you tried putting a 3rd party razor head on your Gillette razor handle?

On some models, it actually works fine. (I talk of the traditional single blade gilette Stirling)