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Soundwave on 24 February 2014
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This is kinda my basis for a deal between MS-Nintendo

- Nintendo gains the rights to the XBox 1 chip/hardware, which they can sell/rebrand as they wish at a subsidized cost. They pay a certain amount for this. Nintendo takes over the day to day management, marketing, etc. of the product, so MS is off the hook for this.

- Microsoft Game Studios is still owned by Microsoft but becomes in effect a 2nd party studio for Nintendo. Ken Lobb is the head of the new studio. Game projects are henceforth financed by Nintendo, such as Halo, Gears, Forza, Fable, and Rare projects.

- Nintendo agrees to use Windows OS RT for a future gaming portable, a way for MS to get kids hooked on their OS rather than iOS/Android from a young age. Nintendo agrees not to use Android OS or Apple iOS.

- MS stakes Nintendo a few bucks every year to help out the game business, but these costs would be a fraction of what they spend now. Nintendo agrees to hire/retain some of the key staff from MS' game studios in Seattle so that these people aren't laid off.

MS gets out of the day-to-day business of the game industry and puts it in the relatively good hands of Nintendo. They also get the Windows RT/mobile OS into another hit portable device (Nintendo handhelds).

Nintendo can quickly reposition the X1 as a new console brand that has a lot of third party support + Halo + all of Nintendo's franchises and enjoy a comfortable 50-60 million userbase IMO (perhaps more).