True, Paul. But the combination of Square and Sega would create quite a compelling force. I don't know that the Japanese could resist.
However, Sega is already developing most of their finest for Xbox, so it would really be like adding Square into the equation. And as you said, Square does not have the power to make or break.
And I don't want to hear any bullshit about how Square has made every console since the NES. Square is just a sheep in the herd and the herd goes where the money is.