People keep saying this, but I don't see Microsoft cooperating. They still have a ton of money in their bank account.
They will go for a very powerful chipset, if for no other reason than to force Sony to either move out of the market or surrender another large chunk of their userbase.
Nintendo is just this kind of quirky, Japanese company that does it's own thing and MS knows that, but Sony tries to do the exact same thing as MS, and MS is not going to take pity on them just because they're broke. Quite the opposite if Microsoft's past is any indication.
This is what Microsoft wanted after all is it not? They got into the game business to break the Playstation brand because Sony would not cooperate and put Windows on Playstation. Well ... Microsoft, here's your chance to deliver the killing blow.
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