What if Sony never entered the console race? This would mean that Nintendo and Sony's collaborated console would have happened. But it isn't as simple as that, now is it?

The Gamestation (N64 with a diskdrive built in) obliterated all competition in the  late 90's - 2000. It dominated the 5th Generation indefinatly. Sold 120 million units. (Gameboy Color exists and sells the same).

The Dreamcast was demolished when the Gamestation 2 released. A Video Game monopoly exists up until Microsoft reveils the Xbox. After the 6th generation, GameStation 2 overtook the market with it selling a staggering 200 million consoles vs the Xbox 30 million. The short lived DreamCast sold only 7.5 million. Before Generation 7 starts, Sony and Nintendo argue over profit share. It has been 50/50, until Sony claims that most of it's profits are from them.( Gameboy Advance and it's variants exist, selling 101 million lifetime.)

Sony has been secretly developing it's own console, the PlayStation, and ends their partnership with Nintendo. 7th Generation starts with Sony annoucing the PlayStation at E3, Microsoft with the Xbox2, and Nintendo with the GameStation 3. Shocking news with the Atari 180 handheld, and was bought by Acclaim. A suprise to all, Sega, reveals the SegaCaster, making a comeback to the console race. Sega had been making mad money with it's multiplats on the GS2/Xbox. 7th Generation is neck in neck with all the competitors in the race. At the end of the race, GS3 sells 55 million, P-Station sells 51 million, XB2 sells 49 million, and S-Caster at 43 million. The 7th Generation was defined mostly by it's exclusives, as all consoles had near identical specs.( Nintendo DS and PSP existed, selling 100 million and 85 million respectably, and Atari 180 with 25 million.)

Its E3 2012,the 8th Generation is about to be revealed. Nintendo showcases the all new UltraStation (specs similar to the XB1), that utilizes the all new Umote and Upad almost seamlessly. The Upad is sold seperatly at $80. Sony shows of the Playstation S (equal specs of the PS4), and shows of the EyeToy V2, sold at $70, and the NewShock Controller (DS4). Microsoft with the Xbox 3(60)(XB1 specs and features). Atari returns, showing off the Atari 3000 handheld. Finally, Sega with the S-Caster 2. They all relased on Nov 2012. 

It is now Jan 22 2014, and the U-Station has sold 10.5 million, PlayStation S sold 12 million, XB3(60) is at 9.4 million, and S-Caster 2 with 8.2 million. The HDS exists.(maintains 3D effects). PSVita also exists ( more powerful than HDS and is selling way better than it now!). HDS has sold 32 million and PSVita at 28 million, and Atari 3000 handheld exists ( slightly weaker than both HDS and PSVita), selling 10 million.)

What do you think? How would you imagine the Video Game Industry would be like if Sony and Nintendo stayed buisness partners in the PS1 era? 

Apple will jump in and unveil the MegaUltraSuperStation32X Mark II. The console is literally a brick with an Apple logo. It sells 500m units.

Apple joins in 9th Generation unveiling the AppleBox (Pipin v2)!

then we would never had to deal with those darn annoying sony fans

Atari and Sega might still be making consoles, but Nintendo would still be number 1(which would have been great). There wouldn't have been that push for optical media and DVD's would maybe be another Laserdisc(which would have been bad)

Sega probably, but Atari no. They were already completely irrelivant and on life support by the time the PS came out. Competition didn't kill Atari. Atari killed Atari.

Atari is a handheld only company now (they refused to go down),was bought by Acclaim, and has a very small profit. Sega is a home conole only company, and has made good profits.

If Sony didn't enter the market by themselves, gaming would still be a kid's hobby and the Gamestation wouldn't have sold 120M.

The world would have ended!!

Brick-sized or really just a brick? If so, it would sell a billion since it's simple in design and has multiple uses. For instance, you could throw it through someone's window with a note attached that reads "Hey! I have a MegaUltraSuperStation32X Mark II and you don't!".