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BasilZero said:
Business wise it might be a good idea (especially for those who are obsessed with sales numbers).

But bad for the consumer since it will be less competition and there would be drastic changes to IPs (i.e. for an example what happened with Sonic) or saturation of certain IP trademarks/characters such as in your example the use of Sackboy and Drake in Smash (although more exposure will work but that doesnt mean it always does)..

Competition really doesn't matter if it can't compete in a good way like the 3DS vs vita situation where nintendo has a clear monopoly on the market. I'm not worried about intel having a monopoly in the processor market because their development driven (It means that there mostly dedicated in trying to develop a better product.) which is a fairly important part to determining if a monpoly is bad.