Sony had plans of alliances with either Sega and Nintendo, and they came quite close to doing this with Nintendo and they tried to team up to create the Nintendo Playstation, but it ended up being unreleased.
But I was more interested in the idea of a different timeline where Sega and Nintendo would be allies instead. Perhaps Nintendo could assist Sega with creating a new console together (the Nintenga?), or to come up with a way so that the Sega Saturn doesn't become a commercial failure (like what happened in OTL), perhaps through overseeing them with the production of the long-awaited Sonic X-treme?
A Mario-Sonic crossover (not the 'Olympic Games' style but rather an actual action game) for the Nintendo-Sega console could also garner a lot of attention. This would be quite beneficial for them as the rivalry between Sonic and Mario during that era in OTL caused a lot of division and aggression between Sega and Nintendo in the first place. Perhaps this could help them to work together against the other force that is Sony, and it may also help to boost the sales of the hypothetical Nintendo-Sega console. If they beat Sony initially during the Console Wars, then Sony might take Sega's OTL place (having their last console released while Sega and Nintendo win the war and continue to create consoles).
So the challenge here is to find a way for Sega and Nintendo to set aside their differences and team up in the 90s during the console wars.

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Hum... There would have to be a need for Nintendo and Sega to join up and the best method I can see for that is Sony doing even better, then while the Playstation is going fantastic and both are flopping Microsoft(which perhaps didn't have the whole mess with Netscape so it is seen as stronger) announces their intention to enter the console market. Thus Nintendo and Sega pretty much panic and decide to take the leap of joining forces for a new console(prior talks if existent were limited because of their rivalry).

From there then perhaps the whole antitrust case was only delayed and distracted by that mess the Xbox goes worse than OTL(where it didn't exactly have a good launch) and Sony still on the wave of success, and probably relieved at what they see as main rival failing too, don't commit to the Playstation 2 enough where Nintendo/Sega are throwing everything they have thinking it might not be enough to ultimate amazing success.
 
Hum... There would have to be a need for Nintendo and Sega to join up and the best method I can see for that is Sony doing even better, then while the Playstation is going fantastic and both are flopping Microsoft(which perhaps didn't have the whole mess with Netscape so it is seen as stronger) announces their intention to enter the console market. Thus Nintendo and Sega pretty much panic and decide to take the leap of joining forces for a new console(prior talks if existent were limited because of their rivalry).

From there then perhaps the whole antitrust case was only delayed and distracted by that mess the Xbox goes worse than OTL(where it didn't exactly have a good launch) and Sony still on the wave of success, and probably relieved at what they see as main rival failing too, don't commit to the Playstation 2 enough where Nintendo/Sega are throwing everything they have thinking it might not be enough to ultimate amazing success.

This can work, let's go with that.
 
Hum... There would have to be a need for Nintendo and Sega to join up and the best method I can see for that is Sony doing even better, then while the Playstation is going fantastic and both are flopping Microsoft(which perhaps didn't have the whole mess with Netscape so it is seen as stronger) announces their intention to enter the console market. Thus Nintendo and Sega pretty much panic and decide to take the leap of joining forces for a new console(prior talks if existent were limited because of their rivalry).

From there then perhaps the whole antitrust case was only delayed and distracted by that mess the Xbox goes worse than OTL(where it didn't exactly have a good launch) and Sony still on the wave of success, and probably relieved at what they see as main rival failing too, don't commit to the Playstation 2 enough where Nintendo/Sega are throwing everything they have thinking it might not be enough to ultimate amazing success.
I like this.
It'd be interesting to think of how exactly Nintendo and Sega would start to flop while Sony does even better. Maybe Nintendo and Sega don't make sequels of Mario and Sonic before they form an alliance? As for Sony: Crash Bandicoot and Spyro come out earlier and Bubsy 3D is butterflied away?
 
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