I still think Sony should agree to work with Nintendo. Why not?
Competing has become passe, the two have enough enemies on their plate.
Sony should help Nintendo will a future handheld and integration into perhaps things like tablets or cell phones too.
In exchange maybe Nintendo might bring some of their games to the PS4 (I'm sure it would be nice to have 100 million consumers to sell to that aren't just soccer moms who buy a narrow variety of games).
If they can work together on a Mario movie, gaming should not be out of the question anymore. The 90s are over, it's time to let old grudges die, both companies need all the help they can get right now.
If the next Nintendo handheld is roughly equivalent to a Wii U, Sony could provide a lot of their IP ... God Of War, Uncharted, Last of Us, Gran Turismo, and it would probably spur a lot more third parties to support Nintendo handhelds more strongly (Square-Enix, EA, Konami in particular).
