Sony and Nintendo were supposed to come together and make a CD drive attachment for the snes. Which no doubt would have been similar to the Sega CD attachment for the Genesis/Mega Drive. But as we know project never happened and we ended up with the Sony PlayStation and the Nintendo 64 instead, both of which are great consoles in their own right. The point I'm getting at it both Nintendo and Sony are two of the biggest names in gaming these days, and if they actually combined their knowledge and experience together, rather than becoming rivals, how would that have changed the gaming industry be today.
I have always wondered how things would differ if the two companies teamed up which would have lead to getting one mega console. Though this could be both a good and bad thing, on the plus side of things we would have two huge companies working together, with all the experience between them I could see some great things being created, though if they did merge back then there would have been a lot less competition with the possibility of them getting a monopoly, which isn't necessarily a good thing.
I believe the gaming industry may have been further if they did work together back then. Take in to consideration back in 2006 Nintendo released a console with motion controls and Sony released a high definition one. Today we have Move which allows both high definition and motion controls on the Sony side of things and the soon to be released Wii U from Nintendo which will be high def and will be backwards compatible with everything Wii. So if both Sony and Nintendo had been working together, we may well have ended up with a high def console with motion controls 6 years ago. Which leads to the question if that did happen where would we be now?