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A complete alliance would be foolish for Sony and Nintendo. But collaborating on the handheld market might be a bright idea.

Say Vita fails miserably and sells say 30-million units life time and software sales are as bad as they were with PSP or worse. Then it might be in Sony's best interest to fold and sign an agreement with Nintendo to support Nintendo's next handheld. Why would this be a good idea, well five years ago the thought would be insane but as you said Apple and F2P content is slowly challenging the handheld market. Analysts have speculated that Apple will use its dominance of the handheld market to move into the home console market. So if Sony's handheld bites the dust then the only thing holding Apple back is Nintendo. In that market Sony should help Nintendo if they go down themselves because Apple taking over would lead to a huge imminent threat to the home consoles.

But as far as home consoles go. I think it would be a loss for Nintendo or Sony to partner on hardware. Mainly because both companies make a shit load off of software royaltees. I think I heard a while back that 17% of every game sold goes to the hardware manufacturer. Thats a massive chunk of change and Nintendo or Sony teaming up would drastically cut their income on software sales. Then their is the fact that Nintendo's software sells the hardware and sells a crap loud, but if they were to be sharing the console with Sony they would lose some sales no doubt about it.

In the end Nintendo and Sony should work together in one way or another in the future if Apple takes down Vita. But the two companies should avoid working together as long as possible and once they start they need to limit their co-operation as much as possible. Only co-operate when its to defend against an external threat. Japanese dominance isn't necessary M$ is no threat and both companies have great market shares their is no reason to combine forces!



-JC7

"In God We Trust - In Games We Play " - Joel Reimer