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kain_kusanagi said:
SvennoJ said:

We would lose competition
- Lesser quality games, no need to push the machines as hard to lure costumers.
- Less developer aid, less funding for original games to stand out from the other guy.
- Higher starting price point, less price cuts. Not just because they can but because there is less money to be made, A lot of people buy both consoles with their accesories making more money for MS and Sony combined then if they would bring out 1 console together.
- Sales will drop off sooner, a lot of consoles at the end of the generation are bought by people getting the other console. No more option to buy that other console late in the gen with a huge catalog of great games to play.
- It will throw the door wide open for a new competitor to come in offering a specialiced loss leading games console.

The only good that I can see come from it is shorter console cycles to keep interest and fend of new competitors. But a lot of people would call that a negative as well.

Ms and Sony teaming up their online would be a much better way to keep a firm grip on the market. Cross console online play would be a huge bonus to choose a MS or Sony console over the WiiU or a new competitor. Joining there movie stores can also only be beneficial. But that is unlikely to happen as long as MS is enjoying the huge benefits of gold while Sony insists on keeping online play free.

There was plenty of heated competition between Sega and Nintendo. There's no reason to assume that wouldn't be the case with Nintendo and MSony.

It will make it easier for more people to switch to Nintendo when they already have the MSony machine. 3rd party publishers will make more effort to support both WiiU and MSony this time. Plus this gen has proven that the market is big enough for 3 consoles to sell well. Leaving a spot open for the Applebox is probably not what MS and Sony want.
Isn't that how the ps1 came about with just Sega and Nintendo on the market. Instead of working with Nintendo Sony decided to launch a console themselves. Why would Sony want to work with MS now.