While I applaud the effort [great thread], your analysis is a little off. We are now in ep VI. I'll explain.
Ep 1.) The Nintendo order, who's SNES is dominate throughout the galaxy, must still contend with the pesky Sega seperatists, who just don't seem to go away. Nintendo wins a great battle against Sega, but in the background, a new threat emerges, promising friendship and alliance: SONY.
Ep 2.) Nintendo and Sony agree to work together, building a powerful new disc drive system that will crush Sega. But, something seems odd about Sony, it's a little too convenient. Was the disc drive system Nintendo's idea, or Sony's?
Ep 3.) At a critical moment, Sony turns on the Nintendo order, unleashing the full power of the Disc Drive system [PS1] they created together to massacre the unsuspecting Nintendo system [N64]. While Nintendo's forces [games] are individually powerful, they are overwhelmed by the sheer numbers of Sony's new system. Now, at its leisure, Sony kills off the remnants of Sega.
Ep 4.) Now in near total control of the galaxy, Sony turns to a new super weapon that will enable them to eradicate the last resistance [PS2]. But Sony's weapon is weak, a fatal design flaw leaves it open to Nintendo's attack [Gamecube]. A reckless new figure, concerned only with money, enters the scene: Microsoft. Microsoft blindsides Sony, providing a crucial distraction. Nintendo's forces [software] win a smashing moral victory with superior efforts [RE4, Zelda WW, MP1, etc], but still they are outnumbered.
Ep 5.) The darkest days of Sony's reign come to pass. The PS2 stretches its hand across the galaxy and all but a few brave rebels are conquered. The might of the empire's fleet is unchecked [GTA III, Madden, GT3, etc] Even the brash Microsoft is frozen in red ink.
Ep 6.) Not content with standard domination [software], Sony once again prepares a super weapon, one who's tech specs cannot be defeated by Nintendo and Microsoft. [PS3] But Sony invests too much of their resources into the new weapon. Microsoft leads a daring sneak attack on the force field protecting the weapon [the fan base], which leaves it open to attack by the small, but daring forces of Nintendo. Too late, Sony realizes that enormous capital ships and weapons can be swarmed over by cheaper, more adaptable systems. The citizens of the galaxy rejoice. However, there is a dark side to this victory, as, in order to suceed, Nintendo must turn to cute, cudlly little things that the masses love, but the real fans hate, Ewoks [Nintendo's increasing reliance on the casual market]