From Gizmodo:

Interesting tidbits coming out today about potential partnerships between Sony and Microsoft later this year and the sales forecast for the PS3.

SCE’s managing director, Tetsuhiko Yasuda, says that Sony will sell 100 million PS3s and that they might work together with the XBox team to port or collaborate on games on the new platform. This means one of two things—XBox is getting too expensive for Microsoft to subsidize and that they want to branch out with their game software AND/OR Sony is hella worried.

“Sony does not regard Xbox as a competitor. Rather, the company may even consider working with Microsoft to develop games together,” Yasuda noted.