Collaboration with Sony essentially takes out a crucial competitor, and there's no way Nintendo wouldn't like that. Collaborating doesn't "take them out," it just ensures them some of the benefits of being in the market. When insularity is such a great asset to Nintendo, why would they want to share profits with anybody? Threatening your traditional advantages while reducing your potential gain doesn't sound like a smart plan to me. Nintendo are trying to make Sony irrelevant. Maybe there's a case of "If you can't beat 'em, join 'em," but Nintendo plans to beat 'em. They plan to absolutely change the rules of the game so that a system like PS or PS2 is not even worthwhile for Sony or anyone else to make. They want to change the rules so that they can only lose if they are out-innovated.
"[Our former customers] are unable to find software which they WANT to play."
"The way to solve this problem lies in how to communicate what kind of games [they CAN play]."
Satoru Iwata, Nintendo President. Only slightly paraphrased.
