Assume for a moment that the PS3 ends up being a colossal failure (as it is heading to being) and Sony is forced to consider their options for a future console. Let's also assume they are still trying to infiltrate the living room with a supercomputer, but the Playstation name is now very tarnished and can never be used again. Do you think it is at all possible that they would just accept Nintendomination and work with their former competitor on the next Wii, rather than going about it themselves?
Or maybe MS would do this? MS is only in the gaming market so they can force their software into people's living rooms and take them over. Their Xbox division is deep in the red, and there is no real reason to keep doing that if they could just work with Nintendo instead, right? I mean, let Nintendo focus on the gaming aspects of the console, and they in turn would handle the other bits, like word processors and HD-DVD players and whatever else it has.
But anyway, if either one of them decides to abandon the gaming market they may just piggyback on Nintendo's console as their trojan horse into your living room. Wasn't this what Sony was going to do with Nintendo with the SNES's CD drive thing that never materialized, but instead transformed into the original playstation? What are the chances that this partnership that fell apart in the mid-90s might come back in the future?
Maybe MS or Sony wouldn't do this for purely egotistical reasons, but couldn't it happen with some other company? Maybe Apple will work with NIntendo, or Panasonic, or one of the myriad of other electronics companies.