The home video game industry originated in May 1972 with the release of the Magnavox Odyssey. Exhibits 1, 2, and 3 provide information on expected sales and production costs for Sony and Microsoft. The case study "Pricing Games: Sony PlayStation and Microsoft Xbox" explores game theory through pricing strategies of these two companies. The study was prepared by the University of Michigan's Ross School of Business, with acknowledgement to Sergei Kolomeitsev. The case presents a simulated situation where Sony and Microsoft engage in a pricing war. The Xbox and PS4 have retail prices of $499 and $399 respectively, and the case recaps the pricing history for Microsoft.