And that's the first step to a monopoly. Competition=good. 3 consoles FTW.

'Cause then we'd be stuck with a console that is difficult to program for, has buggy software and comes bundled with a novelty controller that is severely deficient for playing most types of games.

And what dude17761991hatp said.

What do you mean microsoft can not compete with sony in terms of hardware? Xbox 1 was vastly superior to PS2 when it came to power and quality. Xbox 360 had quality issues but thus far seems pretty competitive with ps3 regarding processing power. Why would microsoft spend 80 billion dollars acquiring Sony when all they need is a better Q&A.

And why would sony bother to merge and split profits with microsoft when all they need is MGS4 and Killzone 2 to be finished? :)

 Ha, have you ever used MS software? It's crap, Windows, garbage. You do realize most games for either console don't come from the console maker. It's just programmers are finally realizing they should lead on the PS3. But anyways, your statement of "Sony can not compete with MS when it comes to software" is completely false. Just thought you should know.

What does either Sony or Microsoft do "when it comes to hardware"?

Apart from deciding which IBM processor, which ATI/Nvidia GPU to use and designing the chassis...what do they really do? All the parts are procured from third parties and put together in manufacturing plants - Sony and MS slap a badge on the front. 

 Actually, if you did some research you'd find Sony did participate in the designing of the Cell, so they have that over MS, you may also have heard about the crappy chassis design of the 360, so while they may not produce the hardware itself, it is fair to say when it comes to hardware and design, Sony wipes the floor with MS.

I know they made up one third of a joint venture in designing the Cell processor...whoopdedoo basil.

Did they make the motherboard? The RAM? The GPU? The hard drive? Did someone with a Sony shirt on put the parts together?

Before you go on about the Cell and Blu-ray and Microsoft 'doesn't know crap' rebuttal, know this I don't care to keep this monotonous feud on-going, where I'm forever repeating my first post...or I had the inkling of a feeling that I could somehow convince you that Sony's farts don't smell like roses.

Wow, I think what some people are overlooking is that the Usage of C++ or whatever its called for the PS3 only exists, because they do not want to pay microsoft for software development.

The Hardware of the PS3 is great.  The cell doesn't necessarilly have to be hard to program for, does it?

Its just that Sony has made it that way.  But regarding this fact, I think it is almost a good thing.  The Sony PS3 is a home entertainment console, and  the 360 is a pc in front of a tv ..   IMO

but @OP , yeah it would be cool if they combined, and that one system reeped the benefits from both companies. But as it has been suggested, that would open the door for another console.

 It must be assumed that even without a merger, another company will enter the market. And we have had numersous discussions about which company would be able to do it, (google/apple/toshiba/samsung/EA) but the real question I have is will it be another HD console, or would it be the equivilant of the next Nintendo console.

Then each side of the home video game sonsole would be divided into two consoles.

High cost/technicaly advanced  Sony and Microsoft     and

Mass market/ comparatively low price/ new ideas   Nintendo ,   and  .........

These are the questions we must ask!