As an example, the Canon 77D which I have supports timelapse mode in which the camera takes a series of shots at a predefined interval of time. However the cheaper Canon 200D doesn't have such a mode, even though the hardware is very similar and there's no reason why it couldn't support it as well.
What's the proper word to use for this kind of pricing strategy?
Best Answer
The practice is often called crippling (which has the usual meaning of the word: "to deprive of capability for service or of strength, efficiency, or wholeness" Webster.
The practice is also commonly used for trial versions of software. Features and capabilities are curtailed until you buy it. Then the full features are enabled.
For hardware, it can be less expensive to use essentially the same design than to develop a new version, especially if the parts cost is low and they can manufacture in greater volume. They degrade the performance, otherwise there would be no reason to buy the expensive version.