The couldnt be a better deal for Nin. Sony wanted to use Nintendo to put the "Playstation" onto the market like a trojan horse to break into the video game market.
The CD drive Sony was making wasnt even a CD add on for the Snes but its own thing called "The Playstation" that could also play Super Nintendo games. Nintendo wasnt already happy with how Sony was with the Sound chip for the snes so when they seen what Sony was planning with the Playstation they backed out but the was still talks ongoing even after the fact they just couldnt agree on the contract. When this didnt work out for Sony they went to Sega to try work out a deal with them. The deal didnt even make it past the board of Directors at Sega. (Does this not sound like someone else your so against?)
With no one to partner with Sony went ahead and decided they would make their own console. They where clearly out for Nintendo and now Sega. They went after Sega's market first. Since they where rich compared to the other 2 companys they used their influence on music and TV to bring movie stars and music stars from their record labels to boost about the PS1, they where able to make the license fees much cheaper then the other 2 console makers could, after Sega gave their price of the Saturn Sony came out and undercut them by $100 since they could afford to. Their They spend millions on TV adverts targeting the user base that Sega had (Teens). Pretty much back then they where the MS you are talking about today, They could get deals, use their movie stars and musicians, pay much more for adverts they used their wealth to break into the console market something Nintendo and Sega couldnt as they where small fish compared to Sony who had billions. They wanted to take over from Sega and Nintendo and used their wealth to get there. Now Sony are facing a bigger fish than them selfs and your here complaining about MS is just funny when a person knows Sony's history.
If Sony was after Nin, then why go after Sega first after partnering with Nin? Why not partner with Sega instead of Nin for hardware, then take Sega out, and save Nin for later? Sony didn't even take either out. MS basically took out Sega.
Sounds like Sony simply wanted into the console gaming market and decided to use another player to get their foot in the door, which is exactly what MS attempted to do in the first place with consoles. Difference being it seems like Sony just wanted to cash in to a growing games market, where as MS mainly wanted to stop PS from growing. Nin breaking off from Sony looked to have made a direct enemy for Ken, so he focused on going after Nin because of it instead of just taking a piece of the gaming pie.
I'm not saying Nin should've just caved to Sony in the first place with their partnership, but they should've tried much harder to make a better deal with Sony, or should've backed out in a much more civilized manner. It would've either stopped the eventual PS competition, or would've made Nin less of a target.
Nin was at least correct in that Sony was definitely going to eventually be competition if they broke off and did their own thing, where as MS simply assumed PS could possibly become competition for the PC and their OS. It's not so clear whether or not PS would've started creeping in on the PC market or expanding into it. If anything, PS has only gotten into PC gaming recently because MS got into consoles and has slowly been attempting to merge console and PC games. It kinda looks like MS is actually pushing Sony into doing what MS feared might happen all along, which is kind of ironic.