Continuity mistake: In the very beginning of "Go My Own Way," Gabriella starts to turn away from Troy twice; once in a shot from over Troy's shoulder and again when it is a side shot of the two of them.
Continuity mistake: During the final dance scene, "All For One," the sky in the background constantly changes from blue and cloudless to overcast.
Continuity mistake: During "Everyday" Troy's microphone keeps switching hands.
Continuity mistake: During "Work this Out" you see a girl pass by Taylor during the line "I don't remember you saying the boss is such a creep". The next shot you see the same girl move by closer to Taylor.
Continuity mistake: Troy's hair constantly changes throughout the movie.
Continuity mistake: During "What Time Is It" Jason is laying his head on his desk. His arms are change between shots.
Answer: Although the dialogue makes it hard to follow, the game was actually a challenge between Ryan/Gabriella and Chad. If Ryan's team won, Chad and the guys would have to perform in the talent show; if Chad's team won, Gabriella and Ryan would have to forget the whole thing. Ultimately Ryan won the respect of the guys even though his team lost the game hence Chad asking what would he have to do in the show.