This timeline has tons of years of nothing going on so I decided to wrap things up to give the audience a gist idea of what happens.
Microsoft releases its new XBox 360 in 2005 with the likes of Halo 2 and Halo 3 proving to be the most popular title for the console. Apple responds in kind by releasing its latest console the iplay, which has the same specs as Microsoft's XBox 360 and has Call of Duty to fight against Microsoft's Halo.
Apple’s console in question:
Sega gets bought out by the Sammy Corporation. Konami buys Hudson Soft and stops making video games to chase Pachinko Machines. Capcom continues to release titles for multiple consoles and showing no loyalty. Bandai and Namco merge together. Square and Enix merge together. Koei and Tecmo merge together. The video game industry focuses on Western type games leaving non-western gameplay popular in countries like Japan.
As for Nintendo's partners in OTL:
Monolith Soft becomes an independent game developer that makes games for phones.
Next Level Games gets bought out by Electronic Arts.
Retro Studios gets Valve backing to make games.
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Disney tries to buy Nintendo but gets laughed out of the business room. Nintendo makes a board game Table Top Role Playing Game based on the Legend of Zelda. Nintendo enjoys profits for a few years until their works start to lose in popularity with upcoming and fresh new Manga that takes their places like Full Metal Alchemist The Brotherhood.
All in all, it is to say that Nintendo never entering the Console market makes everything a little worse off except for Western Type games.