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If Sony and Microsoft combine that would solidify the hardcore to one platform. But the Wii demographic is much different so it would not defeat them.

Nintendo combining with either Sony or Microsoft would kill the company out of the alliance. Simply because it would unify gaming onto a single platform for hardcore and casuals. Take Microsoft or Sony's hardware, put wiimote, hardercore AAA games, Mario and Zelda on the box and that's the end of console wars.