This phrase often implies manipulation where one person controls or influences others for personal gain. She played her colleagues off against each other to secure the promotion.
Pro Tip 2/3
Conflict Creation
Using this phrase suggests deliberate creation of competition or conflict, not occurring naturally. He played the two investment firms off against each other to get a better deal.
Pro Tip 3/3
Strategic Use
Can imply a strategic or clever use of situations to turn them to one's advantage. The negotiator played the bidders off against each other to raise the auction price.