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Personally if it comes down it to, i can see them teaming up. cross platform games could be very powerful if they exclude the 360. which i think has happened to an extent already - No More Heros, Dead Space Extraction. but none of these are system sellers.

which brings me to my next point, imo kinect has to be more than just a 10mil selling peripheral, it has to sell consoles. the point of kinect is to prevent loosing the console war and to make the xbox the console on everyones lips. if it dosent increase the userbase it dosent put 360s in more homes, thus it cannot defeat sony and nintendo. so imo kinect needs to move those units to be considered a moderate success. (just my opinon, no one get upset).