I agree with you MadMan...seriously a chip provider like ATi (or anyone else involved in making parts for game systems) isn't going to reject Nintendo over another customer (Microsoft). ATi wants to make money AND they wanna shut out nVidia, by working with Nintendo & Microsoft they have two PAYING customers and they keep nVidia from competing with them. Believe me if someone were to reject Nintendo they'd basically be signing away a paying customer to the competition 'cos there's plenty of companies out there who want in on this business.
It really dazzles me how I read on all kinds of boards the Nintendo-naysaying that goes on. They say in one breath that someone will dump them for something better (PSX3 or X-BOX NEXT) and then they say that Nintendo would be lost and have no one else to go to. To me, it looks like IBM *might* have ditched Nintendo for Sony, but that doesn't mean that Nintendo has no one to turn to. Before the GAMECUBE was made NEC was going to create the CPU for "Dolphin", but something happened and Nintendo used IBM instead. So right there Nintendo has an option for this next generation. Cray is also working on similar CPU tech. to The CELL...do you think that Cray would deny Nintendo (a paying customer) in on it and thusly let their competition (IBM) get more headway into such technology? I beg to differ. Smaller companies SHOULD band together and compete with these giants in order to keep them in check.
Anyways, back on the topic of Microsoft & Nintendo getting together...
I'm beginning to think that Microsoft may be getting slightly desperate. They're not making a profit at all (in fact they're just bleeding) and are struggling with Nintendo for 2ND place this generation and the PSX3 threat makes their struggle in gaming seem bleak on hype alone. I mean the only reason why anyone supports Microsoft in games is 'cos Microsoft pays them to or the Microsoft name helps sell it to people. The stockholders at Microsoft are surely complaining.
I'm not one of those Nintendo fanatics who thinks Microsoft should or is leaving the gaming industry. I just think that them losing SO much money just to get them a close 2ND or 3RD place in people's minds may have not been worth it. Microsoft is an OS company, they're not known for hardware, let alone as an electronics giant like Sony is. They can't do things like Sony can either (create HUGE format standerds or create groundbreaking CPU's) so they may be in a bit of a situation here. I mean they can lose tons of cash next generation (like this one), but how many generations can they continue to do this against two competitors who actually make tons of profits in games instead?
I think their plan of course called for themselves to SPEND tons of cash to make a name for themselves in gaming but also do something else: swallow Nintendo. Nintendo would be a major ASSET to Microsoft in the games business. They tried to BUY them before this generation even started, they've appealed greatly to the N64 audience as the alternative to Sony, N64 was known for it's console FPS's...X-BOX seems to be the FPS console this generation, they aquired RARE (which turned ALOT of Nintendo fans heads), then they go to ATi (one of Nintendo's console partners) and now there's this talk of them "shaking hands" together! To me, this sounds like they WANT Nintendo to help them in their fight against Sony.
Thing is...Nintendo DOESN'T need Microsoft to be and remain profitable. In fact Nintendo would be more profitable to stay far away from Microsoft. Besides, Nintendo could see Micrsoft's desperation to get them working on their system as a sign of weakness for them next generation. I mean, Microsoft NEEDS to do something to appease shareholders and to turn their games business model into a profitable one without having to constantly spend and bleed so much money. Nintendo, on the other hand, doesn't need Microsoft as they've done just as well as them this generation without having to advertise as much, without spending a FRACTION of the money Microsoft has AND against all the "Nintendo iz t3h kiddie" attitude that hangs over them from the gamers, press, developers and retailers. So maybe Nintendo might see Microsoft leaving this industry in a matter of time if they can't get Nintendo to work with them and Nintendo themselves can break away from competing on Microsoft's level for 2ND place and start competing more against the market leader instead.
It'd be funny if Nintendo led Microsoft on like as if they might get together and then instead back down later on (possibly hurting Microsoft's plans). They (as in NOA) could talk with Microsoft like as if it could happen and then say: "nope...NCL doesn't want to"! Of course, if Nintendo did this purposely that might be considered illegal. Oh well, one thing's for sure it's a Sony VS Nintendo game in Japan, why possibly hurt themselves (or help Microsoft) in this region by partnering them? Besides...Japanese developers are gonna eventually shun the X-BOX 'cos it can't get anywhere in the homeland...so Nintendo shouldn't do anything for Microsoft 'cos of this market (and the games that are created here) especially.
I'm more likin' the idea that Nintendo would create a software AND hardware standerd that other companies like NEC, Panasonic & Hitachi could use in their various future products to compete on Microsoft & Sony's level next generation.