MS should honestly just throw their support behind Nintendo.
Even if the argument is "competition is good for the consumer", competition is only good, if there's actually any competition taking place.
Sony right now has very weak competition, together Nintendo + MS could create a formidable opponent as they basically fill the needs the other is deficient in.
And really, MS doesn't need the console hardware business. It's peanuts for them in the grand scheme of things.
Unless there is some miracle variable like the Wiimote, which is unlikely to ever happen again now that casuals can play thousands of games for free on their phone that's with them 24/7, the industry has never supported three platforms, all three platforms does is splinter the market and make it easy for the market leader to run away with a victory.
