If you introduce a product with distinct features X, Y and Z, then you'll sell that product to everyone interested in it and who require X, Y and Z.
If you introduce product V1 with only X, you'll get the X people, and most of Y and Z people will sit it out.
But then you introduce an upgrade, V2 that includes X and Y. Now you'll sell to some of the Y people. But also, some of the X people will buy it again, to have the full experience of X and Y.
Then introduce V3 with X, Y and Z. New customers, and a percentage of repeat customers who have now bought the product two and three times.
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"By leaving out two features ..."
If you introduce a product with distinct features X, Y and Z, then you'll sell that product to everyone interested in it and who require X, Y and Z.
If you introduce product V1 with only X, you'll get the X people, and most of Y and Z people will sit it out.
But then you introduce an upgrade, V2 that includes X and Y. Now you'll sell to some of the Y people. But also, some of the X people will buy it again, to have the full experience of X and Y.
Then introduce V3 with X, Y and Z. New customers, and a percentage of repeat customers who have now bought the product two and three times.