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I honestly think Nintendo should maybe float the idea of MS or Sony supporting their next handheld.

MS doesn't make a handheld, Sony may bail after Vita. Why not? The industry is in trouble, even Sony acknowledges they rely on Nintendo to get kids into button-based gaming, that's under threat today with the rise of mobile which has also pretty much killed the Japanese market.

Not sure if Nintendo would be willing to use Windows OS, but if they were I think MS would be willing to back them with game/developer/marketing support and perhaps even money straight across.

It's time for an end to silly fanboy-ish bickering, this business needs a major shake up IMO. Nintendo needs a change too, if the answer is always Mario + Pokemon + Zelda + Mario Kart + Animal Crossing then they are going to continue to see a decline in their overall marketshare and losses in the Western markets especially.