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konnichiwa said:

Sony always saw Nintendo as competition, conferences always had slides were they were outselling Nintendo consoles with a big margin but they stopped doing it during the PS3 era when it was clear Nintendo Wii was outperforming the PS3 in sales.  Example

The relative failure of the Game Cube was the trigger for Nintendo to adopt Blue Ocean Strategy.
By which Nintendo itself explicitly sought to avoid competition.
Sony agreeing to Nintendo´s own representation is hardly some outlier.
Using words like ¨always¨ which ignores Nintendo´s own shift in strategy only obscures the reality here.
Nintendo´s non-competitive strategy was reported to stockholders and as such would be grounds for lawsuit if not true.