Use the charts below for information needed

8:34 LEN ... 4G! 188% . . . Based on the information provided in the case, illustrate the pricing game between Sony and Microsoft using a 2-by-2 payoff matrix when Sony and Microsoft charge for their games $399, or lower price to $299 as their price competition strategy "Pricing Games: Sony PlayStation and Microsoft Xbox" Exhibit 1: Prices and projected annual sales volumes for Sony PlayStation 3 and Microsoft Xbox 360 Elite PS3 Xbox PS3 projected number of units Xbox projected number of units price sold (millions) sold (millions) $299 299 11.25 11.25 299 399 11.75 7.0 399 299 8.25 12.5 399 399 8.75 8.0 Exhibit 2: Sony PlayStation 3 Production Costs per unit in dollars Units 8.25 8.75 9.25 9.75 10.25 10.75 11.25 11.75 12.25 12.75 produced (in Millions) Production 98 80 67 55 45 38 32 28 26 28 Labor Materials & 168 161 155 145 143 141 140 140 141 142 Parts Overhead 66.67 62.86 59.46 56.41 53.66 51.16 48.89 46.81 44.60 43.14 Distribution 40 40 40 40 40 40 40 30 30 30 Per Unit 372.67 343.86 321.46 296.41 281.66 270.16 260.89 244.81 241.90 $243.14 Total Cost Exhibit 3: Microsoft Xbox 360 Elite Production Cost per unit in dollars Units 7.00 7.50 8.00 8.50 9.00 9.50 10.00 11.00 11.50 12.00 12.50 produced (in Millions) Production 78 69 62 56 52 48 46 44 44 44 44 Labor O8:34 LEN ... 88% . . . competition strategy "Pricing Games: Sony PlayStation and Microsoft Xbox" Exhibit 1: Prices and projected annual sales volumes for Sony PlayStation 3 and Microsoft Xbox 360 Elite PS3 Xbox |PS3 projected number of units Xbox projected number of units price sold (millions) sold (millions) $299 299 11.25 11.25 299 399 11.75 7.0 399 299 8.25 12.5 399 399 8.75 8.0 Exhibit 2: Sony PlayStation 3 Production Costs per unit in dollars Units 8.25 8.75 9.25 9.75 10.25 10.75 11.25 11.75 12.25 12.75 produced (in Millions) Production 98 80 67 55 45 38 32 28 26 28 Labor Materials & 168 161 155 145 143 141 140 140 141 142 Parts Overhead 66.67 62.86 59.46 56.41 53.66 51.16 48.89 46.81 44.60 43.14 Distribution 40 40 40 40 40 40 40 30 30 30 Per Unit 372.67 343.86 321.46 296.41 281.66 270.16 260.89 244.81 241.90 $243.14 Total Cost Exhibit 3: Microsoft Xbox 360 Elite Production Cost per unit in dollars Units 7.00 7.50 8.00 8.50 9.00 9.50 10.00 11.00 11.50 12.00 12.50 produced (in Millions) Production 78 69 62 56 52 48 46 44 44 44 44 Labor Materials & 180 172 167 161 156 153 149 146 145 144 144 Parts Overhead 64.29 60.00 56.25 52.94 50.00 47.37 45.00 40.91 39.13 37.50 36.00 Distribution 50 50 50 40 40 40 40 40 30 30 30 Per Unit 372.29 351.00 335.25 309.94 298.00 288.37 280.00 270.91 258.13 255.50 254.00 Total Cost O O