Actually, the best solution would be a joint venture by Sony, MS, and Nintendo to make just one console and split the profits. Call it the VGCA (Video Games Console Association, much like the Blu Ray Association). A one console setup could come in a few SKU's (one for motion, one for standard, one elite bundle) so you still have choice. This would benefit everyone in the long run. Development costs for games would be much cheaper (just one platform to produce for), games would look and perform better on that one hardware platform, there would be more games produced, and they would be cheaper games.

Nintendo, MS, and Sony can still make their own separate software titles for profits off of the system, and they can split profits from any online service revenue as well.

If done right, a one console situation would be much better than the console wars we continuously have.

Socialist alert!

Muahahahaha   Seriously, though, I would never want a socialistic government or the like.  True socialism would result in a much better world, but would be impossible to implement.  That's why socialistic attempts so far have ended with dictatorships and horrible tragedy.

Exactly how is that the best solution?  Doing that, the three companies wouldn't get much in the way of licensing fees for third-party titles, nor would they get DLC revenues, and wouldn't control the network, to be able to get these revenues.  They also wouldn't control the message going out to people.

Yeah they would.  Just like the BRA gets licensing fees and royalties for Blu-Ray and splits it amongst its members.  They all 3 would split profits from fees and such and all 3 pitch in to make the best console and online experience for a conglomerate of audiences.

Microsoft and Sony are battling for the control of the living room.  Because of this, they have little to NO interest in joining together.  If they felt threatened by Nintendo, then Microsoft and Sony might consider pooling together.  I would expect MORE companies to enter into the race then them pooling together.

This pooling together was attempted with the 3DO system.  It was found that the model didn't work.  Companies needed a good chuck of licensing fees to offset the production of a game system, and the investment costs.  Without this, the console release price was WAY too high.  Look up more on the 3DO and see why it shows that the pooling together hasn't worked.

all points are true, Sony should really focus on Uncharted, InFamous, Jak & Dexter, Killzone, franchises to help them in North America

Sony have tons of western focused games. About 3 times as many as MS. It's actually the other way round Sony should make more Japanese focused games.

That made me laugh. Isnt that exactly what they are and have been doing?.