IGN is reporting that Microsoft wanted to team up with Nintendo or Sony before they went ahead and created the original Xbox console. However, it’s clear that both companies decided to decline the offer and make their fortunes by themselves. Microsoft offered to handle the software and networking while Nintendo would be in charge of hardware.
“When we first started thinking about doing Xbox we met with Nintendo and we sat down with Iwata and others and we said, ‘This is what we want to do. Could we partner? Could we work together on this?’ And basically they said no.”
“Then Bill [Gates] met with Sony,” Fries added. “Same deal. ‘Can we work together? Can we partner?’ And they said no.”
– Xbox co-creator Ed Fries