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I don't think its going to happen, but M$ and Sony would be great ($ony?)

The only issue is that many of their franchises over lap, so we would probably see the end of Forza (it can't compete with GT), Resistance (it can't compete with Halo) and Ratchet would probably take priority over Banjo.

Anyway, it would mean that I dont have to buy 2 consoles next gen, and mean that that one console would get all of Sony's great franchises, M$'s buying power, a cheaper, but well manufactured, console, blu-ray, downloadable films. The question would be whether we have to pay for PS Live (it would keep the PS brand of course), but if I had all of those things, I would be happy to pay.