From other readings a huge part both Nintendo and Sony said no was because of the way the MS representatives acted in the meeting room. Failing to learn japanese signs of respect/disrespect and business practices. And apparently acting like ignorant Americans during the meeting.
Still they might have said no, but hostilities back then might have been avoided.
@neowarrior793: The only Reason the Xbox exists is because Sony didn't want to put DirectX in the PS2. Bill Gates personally asked the Sony CEO at the time to partner up and Sony said no. Gates was so insulted he made the Xbox.
Mirrors why Sony joined the console race to get back at Nintendo.
But now that Gates and the old guard at MS are gone there's no more mixed feelings regarding Sony and Gaming. Now it's purely from a business standpoint and if Xbox doesn't start performing better it could get sold off.
I'm not buying it until the release of the eventual GOTY edition that will have all the DLC's. Maybe then it will be worth a $60 purchase. I fell for it with Destiny I'm not falling for it again.
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