The only way this works is if Nintendo adopts Microsoft's console operating system fully.
Microsoft is not in this to sell hardware. They want to be the base operating system and software services in living room devices.
If Nintendo said, "We'll license the OS and services such as Live" to Microsoft, I think a deal would be done in days. And I think most nintendo and 360 owners wouldn't have any problem buying an up-to-date HD gaming console from Nintendo that had a Microsoft console OS and Live on it.







