Nintendo's official response
so ya....
I'm all for microsoft and nintendo merging. There's too many awesome first party games that I can't play because there's 3 main consoles.
Nintendo would have unlimited resources to make some badass games. Halo 2 + Metroid on the same system.
Although, those stubborn japanese business men would probably die before letting their company be bought out. They'd probably grab their katanas and KILL BILL.