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not only that but it would spark less competition. if two of the main consoles merged, then its simply a two man race between MicroSony and Nintendo. And when the two big companies merge (theoretically, mind you) then they practically have nintendo beat anyway, console wise.
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A good point, and to elaborate, most worrysomely(I wonder if that's a word..), we are starting to see this occuring in video game software already. A while back there was a merger between Blizzard(WoW, Diablo, Starcraft, etc..), Vivendi(No games come to mind immediately..), and Activision(Tony Hawk, Guitar Hero, 90% of crap movie tie in games). Worth $18 billion right now, it's the hugest game company out there. However, not to be one-upped, EA is gunning after Take Two(GTA, etc...), and is currently trying to do a hostile takeover by buying 51% of their stocks. It hasn't happened yet, but it's almost inevitable at this point.
I think these mergers really stifle creativity, and give people more reason to be lazy. For example, if the PS3 and 360 merged, with Wii as the only competition, there'd be less reason to push graphical presentation in PS360 games, since well, your only competition isn't using the most powerful of hardware. With Sony and Microsoft apart, they have to keep trying to out-do each other in that department in the brutal fight for consumer dollars.