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The year is 2005 andSony and Toshiba are considering developing competing technology standards for high definition movies. Sony's standard would be called Blu-Ray and Toshiba's

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The year is 2005 andSony and Toshiba are considering developing competing technology standards for high definition movies. Sony's standard would be called Blu-Ray and Toshiba's would be HD-DVD. Each company's payoff for a given choice directly depends on the choice the other firm makes. These payoffs are summarized below:

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Toshiba: HD-DVD No new technology 400, 50 Sony: Blu-ray -100, -100 No new technology 50, 400 50, 50

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