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SPECULATIVE 

I'm sure many of you have read that analyst's report on Microsoft and their entertainment division being nothing more than a defense mechanism against Sony's "evil" (in Microsoft's eyes) plans to dominate the living room. Of course, Microsoft wants that pie to themselves, hence the Xbox brand was born.

If that is the case, as in that really is the only ulterior motive that Microsoft has to be in videogames (which I'm not entirely agreeing on), then what would happen if Sony decides to call it quits on the Playstation brand?

I don't think this is likely, but again, if that were the case, then:

Playstation calls it quits, as they flopped this time around, and incurred too many losses.

Microsoft can now gradually exit the console business and refocus on Vista, Media Center and PC gaming/DirectX.

That would leave Nintendo as sole console player.

Who would take up the mantle? Or would Nintendo have hegemony over the console industry?

Hmm...