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I would like to see Nintendo and Sony partner up (as was the intention with the original Playstation) and take Microsoft and then Apple (touch screen multimedia portable) on just to see how they'd do.

Sony agrees to basically bow out of direct competetion with Nintendo and supplies them with CELL or CELL 2 to power Nintendo's Wii and DS successors. Sony still gets to make perhaps their own higher end version for the A/V market. PSN is used as a backbone network with music and movie downloads via Sony on Nintendo machines. Sony's game studios shift game development to these new Nintendo/Sony joint platforms. Kratos, Drake, etc. join Mario, Link, Samus, etc. 

Nintendo agrees to allow Sony to impliment DS2 tech into future touchscreen Walkman and Sony Ericsson cell phone devices to compete against iPhone/iPod. 

That would be a mega-giga-ton.