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As much as it sounds like an awesome collaboration at first blush, I think it would be a terrible marriage. The two companies are worlds apart in how they design their hardware and software. One is much more focused on cutting-edge console technology, iterative controllers, online multiplayer, and cinematic action games and the other is focused on modestly-powered hardware, experimental inputs, local multiplayer, and family-friendly games.

Honestly, I think Microsoft and Nintendo would be a much better fit.