Actually makes sense. Didn't MS approach Sony initially about Sony using MS OS, DirextX, etc. and Sony said no? So MS had to put out their own hardware as a platform for their software.
In the end both Sony and MS want to be in your house, Sony's real focus is hardware and MS's real focus is software and infrastructure, so it's actually not nearly as odd as it sounds.
Sony would deliver HW, they'd work together on infrastructure and MS would supply OS and the console would use DirextX and other MS standards.
Also, both are blowing money trying to defeat the other and worldwide it's essentially a draw at the moment and with Apple and other options for gaming starting to appear I wonder will they really want to keep competing so hard like this? particularly when their focus on each other is actually letting Nintendo outmanouvere both?
Just imagine the combined library of IP if you had Halo, Gears, Uncharted, God of War, Gran Turismo, etc. on one platform...
Try to be reasonable... its easier than you think...
