After eating my own words in the last thread I came to realize that Sony and Microsoft actually has developers from there own company.  Studios like 343i or SCE_Japan that has internally been built by Sony and MSFT.  Somehow i never really thought of it as being Sony/MSFT.  Now other companies like Rare Ltd and Polyphony Digital would still be here if Sony/MSFT left the console business.  They would just need to find new publishers.  But what about all the companies that was internally built?  Would they be closed down or would they have to find new publishers as well?  

Would the industry change a lot if one of them left?  

Well, the most important thing would be the elimination of one third of the mainstream gaming consoles. If either company went under (which will never happen, of course), the other company would see an enormous increase in sales, due to reduced competition.

As for the studios, it would be similar to what's happened with THQ. First, they try to sell off the studios, and people like Turn 10 and Naughty Dog would be snapped up immediately for large prices. After that, they sell off IPs like Hot Shots Golf to the highest bidder. None of the big franchises or studios would disappear.

It's harder to tell with Nintendo because it feels more like one big development house. I guess they would just need to name the different teams.

Well there wouldn't be any point to VGChartz anymore for one.

But what would happen to the internal studios like 343i that was specifically built by MSFT?  Would studios like that be sold as well? Or would they just close

Well I would say tremendous change because they are both very huge companies and gaming is only on small part of them.

But I guess if Microsoft went out of business then it would be much more off an outburst than Sony. Microsoft dominates the PC market unlike Sony.
Sony lost dominance in practically everywhere. Companies like Samsung and Panasonic in the TV section of the market for example.

Or do you mean especially for the gaming industry???

Good question. I would assume the IPs would be sold off by SONY/Microsoft. Company assets never really go away if there is someone willing to buy them, even if they were created internally.

EDIT: PC gaming and whatever console(s) are left would see a huge increase though.

I'm not sure about the studios maybe they will just re brand and be released from Sony or MS. To answer the thread tittle if one left the other would completely dominate Nintendo and the games industry. Because if it were not for MS splitting the PlayStation Market like it did I think Nintendo would have got destroyed by the ps3. Nintendo and fans owe Microsoft more than they will ever know.

Specifically the gaqming industry.  If MSFT ever went away in the OS business that would be scary lol  Sony has no longer the tech gian it once was so that wouldnt be a huge change but they still make good products.  They just need to put a better price on products they make

Ok so they can sell them.  I was starting to doubt myself on being right XD lol  JUst playing.  I thought they could be sold but i cant think of any situation like this.  I was too young when Sega went out of business so i cant even go off of that.

Thanks for the answer by the way

No problem. All assets of publically owned companies can be sold even if the company goes under. It's up to the board of directors and investors iirc (thank you high school stock market class). The buyer takes over the asset, liabilities, and other legal junk associated with it.