The guy who wrote this for Forbes has a terrible idea about Nintendo buying Xbox but the reasoning behind it is pretty accurate.
-There is no money in console sales. That's the reality. PS4 could sell 100 million consoles but if Sony's 1st party software sells like garbage like it did on PS3, it will end up costing Sony money. Nintendo on the other hand was able to pull a profit on the Gamecube because of high 1st party sales. Same goes for Wii U. They could end up selling only 30 million consoles but if Mario Kart and Smash Bros sell 10 million each (1.2 billion dollars), along with some other strong 4+ million sellers like DK, Animal Crossing, and Zelda, they will do just fine. That being said Microsoft has a few options.
1. Keep trying to push consoles (highly doubt this will happen.)
2. Become a 3rd party developer (Profit margin on AAA titles is getting very small. Square needed 4 million Tomb Raider sales just to break even for example.)
3. Sell the Xbox brand (I doubt anyone would take the risk, maybe Amazon.)
4. Sell their individual IP's. (This could happen as well. I could see Nintendo buying Rare back just to get Banjo Kazooie, Original game rights, and Conker.)
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