That's not a point, it's a supposition that's based on an overly simplistic model.

For starters, prior to the Wii U Nintendo generally made a profit on its hardware; it's Sony and Microsoft who espouse(d) the idea that hardware must be sold at a loss. More importantly, as a platform owner Nintendo reaps a sum for each third-party unit sold on its platform. Shoot, it reaps a profit for every unit created for its system. You're essentially calling upon Nintendo, the longest-lasting hardware maker still in the market, to surrender a lucrative profit model and pay a royalty fee to Sony/Microsoft/whoever for every game they make, all to avoid an expense which they've repeatedly proven they can absorb.

Second, if it was easy for Microsoft or (*snicker*) Sony to absorb Nintendo, it would have been done a long time ago. In fact, Nintendo would be extremely difficult, if not outright impossible, for any company to "suck up." They're sitting on a war chest of billions, billions which they've amassed in part because they are more than a mere third-party.

Also, Sony is currently selling bonds to stay afloat. Not stocks. Bonds. They're in no position to do anything to Nintendo.

Third, if this was your original thesis, then the post you made earlier is a terrible, terrible way to express it.

You telling me that they wouldn't have DESTROYED the sales of a whole ton of companies products that walk into their markets with dramatically lesser games but on ps or xbox this last gen?  They would annihilate like 100 games with their current IP without having to spend a dime on R&D for hardware unless they wanted to own the controller/addon market which they would have done too.

Rol as always with few words clears the picture... Rol you are like a sniper one shot one kill

+10

that post made my day!!! LOL

If they did that I wouldn't be able to play Smash Bros online anymore.

I agree that Sony needs to get themselves out of a lot of Hardware markets (HDTV, eReader, Camera, Speakers, Receivers, etc), but they need to stick with the Playstation line in both Hardware and Software.

Nintendo is doing fine, but last couple of years have been brutal to them with declining sales and strong Yen. They need the Wii U to be a big success which I think the machine will be because it is packed full of value and has really engaging fun software.

MS is the only vendor in the market that doesn't bring any hardware value. They do bring services innovation and value with XBL and some other innovations long replicated by the others. If they don't produce unique software for their consoles and rely completely on being console of choice for majority sales of 3rd party ports, than eventually they will lose the multi-platform gamers like me who just don't use their machine that much.

Hard drives in consoles, ethernet cards in consoles, mics for online, kinect, and easy to program architecture. Yea no value to any of those items.

This is actually quite good points, and I agree that Nintendo should do this next gen - with their handhelds. But that all depends on how well 3DS will end up being. RIght now it's doing pretty damn good. And if Nintendo can sell 100m hand helds they're safe and don't need other companies to make their hardware.

Whats funny is that at this point its more probable that Sony goes third party than Nintendo.

Not really. Sony's only purpose in videogames requires it to be a first-party. If it was just another third-party, it'd be better served by abandoning the market altogether.