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Sony and Microsoft = the Xboxstation would be great (MGS + Halo + Final Fantasy + other RPGs usually on Sony = awesome)
Not to mention that Microsoft may actually use blu-ray ;) Actually, while the capitalist in me wouldn't want a Sony/Microsoft merger, I cannot tell you how often I look at both consoles and wish one had some component of the other.Marvel and Capcom :P
As a console maker, Sega and Nintendo would have the biggest and best 1st party titles although they would still need Team Ico to completely crush the competition.
Crytek + Valve for ultimate HL3 engine, but knowing Valve they could probably make a superior graphics and physics engine that would work on a far wider array of PC specs, its the way they roll.
Blizzard + Bioware for awesome MMO-ness
Sony and Microsoft. Sony has always been a hardware company where Microsoft has always been involved in software so it would play to both their strengths.PopadophalisMicrosoft's involvment in software is largely due to luck. Bill Gates just happened to be in the right spot at the right time, when all the other companies (Atari, Apple, Commodore, IBM) realised that making hardware wasn't the way to get rich with computers, it was the software. Combine that with the fact that Apple (The only *decent* competition at the time) did an epic fail meant that Microsoft ended up on top without even being that good. And once you're on top, it's really easy to stay there. Apple has some great ideas, but most of the time they don't manage to move out of the small (Around 8 or 9%) Apple userbase, until a bigger company comes along and claims it (Usually Microsoft). If Sony and Apple were to merge you would have a force to be rekoned with. Not only would you have the huge amount of innovation (Which Sony really needs, they basically need to re-invent themselves as the pioneers of new technology like they were 20 years ago) but you would have a company that would be able to push that technology into houses (When it comes to pushing tech, Sony is pretty damned good at it, sure there are it's failures, but there are so many more sucesses). And really, although it's a far off idea, it's more probably that Sony + MS. Did you see the amount of product placement in MGS4? :P
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