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I can see Nintendo collaborating project-by-project basis with Sony - but only on Nintendo's terms (AKA not a Playstation1 debacle). And nothing permanent, of course. Nintendo has the greater strengths when it comes to solely gaming, and Sony has the strengths when it comes to technology:

http://crunchgear.com/2007/05/24/sonys-flexible-full-color-oled-display/

"This display will allow for the development of bigger, better, lighter, and “softer” electronics Sony says. In case you were wondering, the screen has a resolution of 120×169 pixels and weighs only 1.5 grams. "

I mean, how COOL would that be integrated into a gaming system somehow?