prinz_valium said: nintendo first Party games exclusive on xbox one would be megatron
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Nintendo could also act as a huge second party just like the Pokemon Company and GameFreak is to Nintendo. This way Nintendo can make whatever games they were going to make if they still had a game system and Microsoft would always let Nintendo know what kind of development kit the Xbox has and how to use it.
In fact, Nintendo can still make their weaker console that is the $250 price as long as it uses the agreed Xbox/Nintendo controller and the games are easy to port for the Xbox machine. This way, consumers with limited money can buy the cheaper Nintendo box if they can't buy the $400+ Xbox console.
In the perfect world, though: Nintendo, Microsoft, and Sony will do well and would not have to merge/buy each other.