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I remember reading somewhere that MS tried to acquire Nintendo at some point, but the deal fell through… though I can’t remember why?

As for the whole merging concept, I would have to agree with Origin.  If any of the current players join forces, it will only create a monopolistic powerhouse and stifle competition (think MS with their OS).  We’d likely see some amazing things in the short term, but products will become stale and less innovative in the long run.