Are Microsoft and Sony working together?

I’m very skeptical when it comes to rumors from unreputable sources and the whole “I know somebody who knows somebody,” kind of thing. And yet I recently heard tidings that were intriguing, if somewhat open-ended. I feel I should report it on the off chance that it leads to something. Then you could say you heard it here first. You can help me make heads or tails of it, but I think the bottom line was: Microsoft and Sony are in talks together. Where that will lead, we do not know.

First I will say that this source has been reputable for us in the past. He let us know about the depth of the Nintendo Network and Nintendo’s social/online plans months before E3. He told us about the Wii U’s trademark issues for the letter U and we reported it one month before it became public knowledge. He told us about that he saw black casings for the Wii U back when everyone only had seen the white version. And he told at the same time about the Wii U’s clickable analogue sticks. He also told us about a game that sounded close to the final reveal of NintendoLand.

So, basically, I have learned to give credence to the things he says. After E3 I heard nothing from him, but just today he decided to throw me a few bones. Unfortunately, they don’t paint a clear picture. He doesn’t like when I quote him word-for-word, so I’ll say each point in my own words. The statements were vague and hopefully you can help me figure out the meaning behind them.
1.Sony and Microsoft are terrified of the upcoming generation. Sales are down each holiday season, Apple is taking over market space, and Nintendo has decided to join the hardcore industry more whole-heartedly.
2.Epic, EA Games, Crytek, Konami, Square Enix, and other powerhouses are being more[..]ertive, having more of a say in the matter – they are somewhat directing what will happen in the next generation. And they are swaying the heads of both companies in certain directions.
3.Sony’s executives are enticed by the money flowing from Microsoft’s coffers.
4.Sony and Google had been in talks around GDC time, this year.
5.[This was his most confusing statement:] Microsoft opened the doors for talks, some “party” walked in to negotiate, and Sony had to reluctantly agree.
6.As Katuragi left Sony, a psuedo-truce was able to form. [I take this to mean: Sony exec, Tetsuhiko Yasuda, once said that he would consider working with Microsoft. But Ken Katuragi, the father of the Playstation, was against it. After he resigned as honorary SCEI chairman in June 2011, it opened up the opportunity again to discuss a partnership.]
7.There will be dramatic revelations that will affect the entire industry.

So, I’m unclear if this is talks just between Sony and Microsoft or if there is someone else involved. He mentioned “some party” stepping in and doing negotiations with Microsoft, and this affecting Sony too. Can it be a certain company with a service that Sony and Microsoft have to agree to jointly support? Maybe Valve is forcing Sony and Microsoft to partner up on a console version of Steam? (Now, I’m just guessing.) It didn’t sound like it was just a straight merger of Sony and Microsoft, more like they will somehow cooperate together in a way that services them both. And this will have an affect on the whole console industry.

If you have a better guess at how to connect these dots, I’m all ears.

"nintendoenthusiast"

Nothing to see here folks.

if it said "Vitaenthusiast" it would have been something for folks to see here huh?

if it said "Vitaenthusiast" it would have been something for folks to see here huh?

They need to collaborate to build one fukkin console. That way they're be no more fanboyism and everyone can enjoy every damn game released. Would be easier on devs too, focusing on one platform instead of 2 or 3.

They need to collaborate to build one fukkin console. That way they're be no more fanboyism and everyone can enjoy every damn game released. Would be easier on devs too, focusing on one platform instead of 2 or 3.

yep i've said this for a while now... Win Win for everyone involved

If these companies formed one console there would be no reason for competitive pricing. That means prices go up because the consumer only have ONE choice for a console.

If these companies formed one console there would be no reason for competitive pricing. That means prices go up because the consumer only have ONE choice for a console.

For those of us pushing a hunnid whites a day money ain't no thang.

are you kidding? if they raise the price people just wont buy.

youve got the pc market, the apple market, the onlive market.

theyll shoot themselves in the foot so fast if they raise prices.

not everybody pushes a "hunnid" white people a day though [pic]

One console = less competition = bad deal for gamers. I hate fanboys but the competition between sega, Nintendo, sony, ms and others have driven this industry.

One console = less competition = bad deal for gamers. I hate fanboys but the competition between sega, Nintendo, sony, ms and others have driven this industry.