The reason why I say this is because it appears that both will be better able to meet their goals working together than they will working seperately. Microsoft isn't averse to working with other competitors, even in the same industry so cue Apple if you want and Microsoft perfectly matches Nintendo in terms of shoring up their weaknesses in networking, development environment and they would both benefit from having similar hardware and that hardware can be produced cheaper with better economies of scale for both parties.

Advantages Nintendo:

1. Microsoft already has the kind of network Nintendo would like to have and they even have technologies like real time bleeping of voice communication which aren't available anywhere else. If Nintendo were to build a network like Live for themselves it would cost them over a billion dollars whereas Microsoft already has one ready to go.
2. Nintendo has struggled somewhat with development support and Microsoft has already got the bridges built between console/PC which they would want to leverage as their interface shares many commonalities with the mouse. Microsoft already has some of the best development tools available which would help Nintendo create even better games even more quickly than before whilst ensuring supurb 3rd party support.
3. They will not have to build their own next generation hardware, they can simply base it upon pre-existing technology which would speed time to market for them and allow them to focus on unique differentiating technologies rather than the box which is pretty irrelevant at this point once they have the form factor/power requirements inside the range they want.

Advantages Microsoft:

1. Their Live network benefits from every additional user they can get. Its a network effect. So long as people are subscrbing to Live they are winning. The more subscribers they have the easier it is to gain additional subscribers, momentum is everything with networks; see Facebook vs Myspace for instance.
2. They can leverage the cost of their hardware development over a wider and larger base of hardware which gives them leverage to work out even better deals with technology companies and this can lower the per unit cost quite considerably.
3. It gives them an exit strategy in the console space if they want to take it. If they can carry on Live through Nintendo hardware even if they are no longer successful with their own they no longer have to take the risk of further losses on hardware.

advantages nintendo:

1. Sony would be able to do the same.. they aren't exactly nowhere to be seen when it comes to the network theyre console uses..

2. Wii and 360 audiences are VERY different from eachother.. although it could potentially work in the US

3. Don't see the advantage in that AT ALL

Advantages MS:

1. I doubt alot of Wii owners would pay 50$, €60 or 40 pounds for XBL..

2. Don't see how this works.. lol please explain it better.

3. I doubt MS wants to leave the console market and them needing the Wii to leave the console market is absurd..

1. Sony doesn't have the technology developed which Nintendo would want for an online network if it was deployed on their console. They don't have the fair matchmaking system TruSkill, they don't have real time censoring of voice communication and they don't have the development on the back-end for seamless consistant integration.

2. Im talking development not consumer relations.

3. Easy. The box that runs the games is irrelevant to Nintendo. So long as it does its job and sits in the corner out of the way they are happy with it. However the interface is important to Nintendo and is worthy of their continued attention.

------

1. If the opportunity was to double/tripple Live userbase they would drop it in a heartbeat.

2. Nintendo + Microsoft buys I.P for $1,000M. Divide over 150M units = $7 per unit rounded up. Divide the same technology over 60 and 90M units respectively costs $17 and $11 per unit each respectively. Additionally they could make larger purchases of various components and get bigger bulk purchase discounts which would definately add up and it would be easier to cope with shifts in demand.

3. Where did I say they need the Wii to leave the console market? As far as I can see their highest priority is on Live and the Xbox 360 is just one means to that end. If Nintendo also has Live on their hardware and the next Xbox is struggling they can close up shop if they wish.

This ain't gonna happen.

Nintendo's goals are to make lots of money -- which Microsoft has not been able to do with its gaming division.

Mike from Morgantown

Thats a pretty useless retort. You can do better than that.

ROFL

OT: I...honestly don't know what to say. Surely there's more to be considered than just the reasons you mentioned. But what do I know.

Microsoft isn't in the console market for the same reasons as Nintendo.

Microsoft wants to have some control over living rooms to avoid Sony penetration on their PC market. They don't mind if they have abysmal losses.

Nintendo wants profit.



I'd rather have an Apple Nintendo fusion. Now that would be epic.

Nintendo is very hesitant to work with other companies.

They never lend their rights to anyone.

That's why we wont be seeing a Legend of Zelda Movie. *cries*

Not gonna happen. Nintendo will never work with someone else.

I think Sony + Nintendo would be a better collaboration than Microsoft imo.