MS can not compete with Sony when it comes to hardware.

Sony can not compete with MS when it comes to software.

Wouldn't it be great if Sony and MS got together and made the next console? Everyone wins. Sony could make all there money off the unit and games, and MS could make there money off XBL and downloads.

Both companies would make more money. A lot more money (especially MS). All the high end games (assuming Nintendo goes the same route and makes a far less powerful unit) will by nature be exclusive, and thus coded better for the platform. It could play all PS1,2,3 games and all X-Box and 360 games. MS could make the dev environment, and lower costs and time for release, yet on Sony hardware, thus producing better results on a more powerful system.

I bet if that thing came out, they would sell 150-200 million of them. Huge profits all around.

Best of all, not only would Sony and MS come out better for it, we win. 

Good luck with that.

 The DC ran Windows CE, and Sony currently sells millions of pieces of hardware running MS software, so it's not too far fetched ;)

right.......if someone ever did team up it would more then likely be a Nin ps3 combo of Nin and 360 combo

I think legend had a thread on this ^^ but yeah, that would be awesome :P Too bad I don't see them teaming up and or MS buying Sony.

I think it will al come down to what happens to the 360. If the PS3 beats the 360 due to hardware issues from MS, they might realize competing with Sony on the hardware front is futile, and find another way. MS is not in this to kill Sony, or because they harbor any ill will towards the company. They are in it because they saw an opportunity to make a lot of money. If they realize teaming with Sony will generate them more money, they would do it.

As for Sony and Nintendo teaming up, that won't happen. Nintendo has no incentive to do so. They are doing incredibly well.

MS cannot buy Sony - that's just a dumb rumour. Sony is simply too large and MS ain't gonna takeover a major Japanese business. As for merger - given their twin styles couldn't be more different - I doubt it.

Besides, this gaming view ignores the fact that both MS and Sony are much larger in other areas. MS is going to be too busy trying to get Yahoo to compete with companies to worry about its tiny entertainment division.

Also, to original post - on evidence to date (which incudes PS1, PS2 and Xbox) Sony clearly know how to sell software even if they've struggled a little with PS3. MS has still to prove it can win a generation with both SW and HW. Heck, Nintendo HW and SW has caught up with MS in 12 months and time adjusted Sony is matching MS so one of your two basic points is completely wrong - mind you the other is correct :)

Keep dreaming that it will happen and maybe just maybe ..... NAH never will happen.

Nintendo and Sony have already worked together on a console, the CD upgrade for the SNES.

However Nintendo left Sony in the lurch after they wasted millions in dev on the device... so Sony decided to use the development to make what was eventually known as the Playstation.

Nintendo brought Sony into the gaming market by asking them to invest, and then pulling the rug out after seeing the Mega/SEGA CD and deciding CDs were not the way to go. So I doubt Sony will work with anyone again.

 I must have written that wrong, because it looks like you misunderstood everything I said :)

 I never meant the companies would ever merge, just they could parter on the next console.

Sony has no problems selling software. It's making it where they have issues (at least compared to MS). There Dev kits pail in comparison. There online experience sucks compared to XBL. Although Sony did compete with MS with online gaming and won (Everquest vs Acheron's Call), they have yet to prove they can do it here. I don't know what Home is really going to be like, but I bet as cool as it will be, for pure online gaming with friends, it's still going to fall short.

MS is working hard on IPTV. Sony is not working so hard in that arena. Merging would bring Sony into that market, and provide MS with a set top box that they don't have to produce.

It's a win for everyone really. At things that each company is good at, nothing really overlaps. Sony would still make the same profit they make now, with systems and game sales, so it's no loss to them. MS would make billions on XBL an IPTV without having to make a piece of hardware (Perfect for them).

It might never happen, but it should.

 Oh and @Morgyn. Sony works with partners all the time.