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Nintendo, afaik, are working by themselves. IBM and ATi are working on the hardware architecture, the Big 3 don't really need to work together. Microsoft was Nintendo's real rival for this current gen, and if Nintendo keep going the way they are now I don't see any reason as to why they won't blow the X-Box 2 out of the water.
And fremen, X-Box sales in Japan are about 500-ish a week =D
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"'There's a tendency among the press to attribute the creation of a game to a single person,' says Warren Spector, creator of Thief and Deus Ex."
-- From an IGN game review.
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