Well if we're talking a magical pretend world where Sony and Microsoft get along together perfectly and we take all of the strengths and none of the weaknesses of both consoles and pretend that Sony and Microsoft have infinite money that they don't have to explain their spending of to anyone....

The Wii would still be in the lead, but not by as much, it's true.

Like million said, wii does not compete with either x360 and ps3, only in a residual piece of demo. Also, you people said that there´s plenty of hradcores that have both consoles. Well, in my opinion many more have wii and another HD in their houses. If by any chance, m$ and Sony had joined forces, like the fantasy proposed by the OP, I think wii would be tied with the new plataform. You have to remember that ps3 has a big demand that is halted by price. When I got mine, I remember I got a lot of envy looks and in the airport a lot of people joked and talked to me only because of the ps3. It is desired by the common people. Of course, when they go to buy a console, they look at price, library, appeal, and the wii comes on top, but if the new "ps360" was at $300-350 with the joined library of them both, with free Live, Home, and BC, my bet is : the majority would eventualy get both consoles. They would complete each other. Something in the way of 60-70% of the pop that play games would have both and the other half would roughly divide 50-50. So the final market share would be 50-50 with a diference of 1 or3% for one or the other.

Yeah Wii has it's userbase for substaintially different reason that any other systems have for theirs. It wouldn't matter if any other systems did whatever (other than getting a wii box out first) or how many their are because Wii's customers still want a Wii. Hardcore gamers that own all three would just have more money for games.

Through actions alone most 3rd parties seem to already thing PS360 is one console, hell even PC developers are getting in, soon it may be PCPS360 vs Wii, then the market share will be all kinds of wierd.

There are X amount of people who bought only the 360, for the exclusive games.

There are Y amount of people who bought only the PS3, for the exclusive games.

There are Z who bought both to play all the HD games.

The new console would have a base of X + Y - (1/2)Z, which would turn out to be a lower number than the combined total today (ignoring everything else, like price, delays, etc.)

Consumers have little interest in expensive consoles that offer only graphics upgrades.  

They wanted a new gaming experience, and Nintendo brought it to them cheap.

I predict the PS360 would sell even less than PS3 and 360 combined, due to price.

Really? I like hypotheticals but this one is kinda pathetic... it would only be bad for HD consoles cause they wouldn't have a competition to lower prices and people couldn't afford the console...

problem here is that you are saying that they could win because it could be more powerful, have a blu ray and a big hard drive and stuff.

You should realize that the wii won because it introduced new values, it reached a long forgotten market, it is affordable and it attracts more kinds of gamers (new, old, core..). Not because it has a waggle control but because is changing the view of gaming.

MAYBE it could have been a 50-50 situation. But I doubt it.

That would be what the Wii is asking for. No, the Wii's sales would increase even more if that happened.

all the third party support still be on the ps360.