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Better idea.

Sony and nintendo should manufacture the same console hardware but with different controllers. One sku will feature a regular dual shock while the other will feature a WII mote.

As for the handheld space I think we should just let nintendo do what it wants to do. Sony will essentially be third party at that space. Well I guess sony should have some say in developing the hardware because their a little more on computer engineering but at the same time they should price it $200 or $180 and under.