I don't see how Sony could stop any company from releasing their PS1 games on ANY system. For one, we have already seen Castlevania: Symphony of the Night released on Xbox Live Arcade. Second, compilation packs (like Mega Man X Collection) have been released for non-Sony systems that contained PS1 games. Unless it is a game Sony legally has some control over currently, there is nothing Sony could do from stopping them being released on Virtual Console, Xbox Live Arcade, or other similar services. If Square Enix wanted to release Final Fantasy VIII on the Wii (I was gonna say Final Fantasy VII, but I don't know if Sony still has any control over it since they published the original version, although they don't own the IP), Sony couldn't do squat. The only issue is that Nintendo would need to come up with a different name for the system, maybe a "Other" category?