Why Microsoft And Sony Should Team-Up For A Next-Gen Console

With the impending launch of the Wii U this month, the next few years of console speculation will focus on the followups to the PlayStation 3 and Xbox 360 by Sony and Microsoft respectively. And while the PS4 and Xbox 720 consoles are the most likely successors (2013 - 2015), at this point in time I feel it would be best if Microsoft and Sony just combined their efforts and released a single console to compete against the Wii U.

There are a number of reasons this would be ideal. In no particular order:

1. Sony’s hardware track record. Let’s face the facts, Sony builds a better console in terms of reliability and lifespan. When Microsoft recently announced it had sold over 70 million Xbox 360 consoles, just about everyone wondered aloud as to how many of those were replacement consoles due to the RROD disaster. If Microsoft handed off the hardware duties to Sony, they’d inherit a solid hardware platform from a proven electronics manufacturer.

2. Microsoft’s software pedigree. You have to give props to Microsoft for building a solid suite of software for their Xbox 360. The console interface, online network, storefront, avatar system, etc. has just been ahead of the pack this generation. Software is Microsoft’s biggest strength, and in this merger Sony would inherit a robust OS and online network. Not that Sony’s PSN isn’t bad, it’s just been playing catch-up to Xbox Live these past six years. I’d like to see this new Xbox Live adopt the PS Home feature as well.

3. Combined market saturation. Sony has struggled with their PS3 compared to the preceding PS2. Their struggles are even greater with the PSP and PSVita in foreign markets. However they’ve had amazing success in Japan with all of their hardware releases. Meanwhile Microsoft does really well globally, except in Japan where they have struggled to make a dent in the gaming landscape. A merger would ensure global market success, arguably enough to surpass Nintendo.

4. Sony’s game division is struggling right now. It’s not bad enough to drive them from making game hardware, as was the case with SEGA. But the deep pockets of Microsoft would at least help underwrite the development, production, release, and marketing of a new console.

5. Microsoft could at long last get a foothold in the handheld market. If such a combined console did occur, you might see Microsoft exclusives like HALO and Gears of War being ported over to the Vita. If this merger became the success I believe it would, then it would likely result in a combined effort for an all-new handheld as well. This reason strays a bit from the primary console topic, but a merger with Sony would entail some kind of handheld collaboration as well.

6. It would become a two horse race again. Having only 2 consoles on the market (Wii U and this ‘XStation’) would streamline things a great deal for consumers. I’m sure retailers would applaud this as well. One could even surmise the next-gen era of consoles can only support 2 hardware platforms, given the increased presence of other gaming platforms (iOS, Android, Social Games). I personally would welcome this development, as it would harken back to the Nintendo Vs. SEGA era of the early 90′s. I’m sure there are many people who own multiple consoles would see this as a relief for their bank account too.

7. Game development would be easier (and cheaper). Sony’s consoles have been the least-friendly to develop for; their software architecture is the bane of many game development teams. With Microsoft at the software reins, game developers can breathe a sigh of relief. An easier console platform to develop for can save time and thus money in development costs. Also, there would be one less console to port to, hurray!

8. The merger would ensure a strong lineup of titles from launch and through the initial few years on the market. Many consoles and handhelds usually have a lack of quality of games to begin their life cycle. The combined efforts of a merger would ensure a stronger library from the start. This is on the assumption that such a merger would not cause Microsoft and Sony to shed a bunch of internal game studios to cut costs. However given the number of game studios that Microsoft and Sony have closed these past few years, whose to say they aren’t already planning a merger?? Okay it’s a stretch.

9. Because money. Both companies would hedge their losses in producing a new console. They would command far greater market share than Nintendo (I’ll say this now, Nintendo would have a tough go of it should a console merger occur between its competitors). A larger install base would also lure game studios from Nintendo and Apple. There is also less incentive to offer price cuts on this shared console (boo!), but if it’s made well enough and is buoyed by a great library of games, this shouldn’t be an issue (In the old days consoles got very few price cuts and usually at the tail end of their lifespan). A consolidated install base would also be a major windfall when it comes to big titles that are currently cross-platform, like Call of Duty or Madden. A consolidated customer base means a larger online community, which has major potential for advertising revenue and corporate partnerships (Netflix, ESPN).

This is all theoretical, but given the recent bombshell deals Disney has been executing, a Sony-Microsoft combined effort for a single console platform doesn’t seem so farfetched. There has been precedent in collaborating in high-end products, though mostly in automobiles. And who can forget it was almost Nintendo and Sony getting together in the late 80′s?

There are many hurdles for this, namely figuring out how to split revenue between the two companies (which I imagine is a much more preferable predicament than losing money). But given their current strengths and weaknesses, Microsoft and Sony are the perfect match.

Oh I almost forgot: 10. Xbox and PlayStation fanboys would go extinct.

Do you see any additional pros or cons of this hypothetical merger? Speak your mind in the comments.