If they actually teamed up and were "sober" and just made a "normal" console at a $399 or less cost and a handheld to go with it, my personal feeling is they'd beat Sony ... and beat them pretty badly and they'd basically have full control of the entire game industry (outside of smartphone/tablet games).
They'd rule PC too I think (sorry Steam).
But they are too stubborn to do that, so I doubt it will ever happen. MS sells too many XBoxes too even if XB1 is going to hit 40-45 million+ which is too many to just stop making their own dedicated consoles from and Nintendo has a safe haven with portable consoles that Sony really can't touch so there isn't much incentive for them to move from there unless other tablet makers start to encroach on that space over time.
But seperately, Sony is able to beat up on them pretty good in the standard console area. It's like a big brother that's able to beat up on his other two siblings, but the two siblings don't realize if they teamed up they whup the bigger brother.
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