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No it won't happen. Gaming has gotten too big and another competitor would take a stab at the market.

Another thing is that if it did happen then guess where EVERY game would go. I mean every single third party game would be going to Nintendo's next generation system and with no competition Nintendo could definately make a more expensive more powerful machine as it wouldn't have to worry about the 'cheapest console' card.

I think if it did happen, it'd probably be the best console the gaming market has ever seen in terms of library.

Again. It won't happen.