Microsoft (X-Box) and Sony (Playstation) are each planning to introduce one new video game into the market. Each is considering three different kinds of games: warfare, street races, or sports. Profits are shown in the boxes (Sony's profit first) in millions of dollars.

Microsoft

		Warfare	Street Races	Sports
	Warfare	1, 2	2, 3	4, 7
Sony	Street Races	8, 8	-3, -3	2, 10
	Sports	5, 4	5, 1	-7, -7

1. Are there any dominant strategies? What is the Nash equilibrium?
2. If this is a sequential game, where Sony moves first, what is the Nash equilibrium? Show a game tree and solve.