Oh, and obviously Nintendo should actually control the entire internal design, while Sony handles all external relationships including marketing. Nintendo can make better games and have a shit-ton of great ideas for interfaces; but Sony can sell a console on hype and atleast know how to approach the third parties brave enough to try and compete with Nintendo's insanely good franchises (and, obviously Sony's already impressive but in this scenario uber-charged franchises). 

well if sony doesnt touch and doesnt look at Nintendo IPs it could work. I think its also a possibility if Sony fail big as a company like they do now and Nintendo fail with their consoles and thats already happening.

As much as it sounds like an awesome collaboration at first blush, I think it would be a terrible marriage. The two companies are worlds apart in how they design their hardware and software. One is much more focused on cutting-edge console technology, iterative controllers, online multiplayer, and cinematic action games and the other is focused on modestly-powered hardware, experimental inputs, local multiplayer, and family-friendly games.

Honestly, I think Microsoft and Nintendo would be a much better fit.

I completely disagree with this.  If Nintendo takes control of all internal design, then they'll try and maximize profits with what they do on most games and  systems they develop.  Sony should take care of internal design and both Nintendo and Sony first parties should develop games.  People from both Sony and Nintendo should be part of customer relations, because Nintendo has better business sense on trying to secure exclusives while Sony has good customer relations, but think that developers will just publish games on their console just because they're Sony.

There would be competition.  East vs West.  Japan vs US.  Microsoft vs Sonytendo.

Nintendo in charge of the Xbox? That'd be much better for gamers and a healthy industry than Nintendo in charge of Playstation to be sure. (I'd own both.)

Nintendo have the infrastructure designed to support a console by themselves; with Xbox's resources that could really work, especially thanks to the addition of a large Western influence. Retro Studios could become the Western version of Nintendo EAD. - That is an Xbox I'd actually buy! I'd also buy the Playstation 8 though.

No, just absolutely no. I personally don't like Sony's hardware. I never liked the dualshock controller. Nintendo has lots of money. Sony merge will only benefit them. Truth be told, I'm not that fond of Playstation games either. It's best that they remain competitors.

It would be awesome if Sony just had some sort of agreement with all of Nintendo like they do with Quantic Dream where they get funds and access and freedom to make what they want but they keep it exclusive on Sony stuff. That way I still get all my favorite Sony awesome first party, Sony's online, Nintendo's focus on local multiplayer, Sony's hardware, Nintendo's non-milking skills (one game per gen), Nintendo's kids appeal, Nintendo's iconic selling power franchises, Sony's nice iterative controller with no gimmicks, and just imagine the next Smash Bros. with ALL the Sony properties from a competent developer and the more fun Smash rules!

I am a Nintendo fan and I would shift to PC gaming (possibly not, depending on how it plays out)

Honestly I hope it doesn't happen but it would be awesome as long as Nintendo got credit. But they know how to market handhelds and Sony can market consoles so they'd be unstoppable.