Namco-Bandai and Sony have created an alliance to take market share away from Microsoft and Nintendo, according to a recent article at Bloomberg. Their joint venture will be named Cellius, Inc. and Namco-Bandai will own the majority of it -- barely. They get 51% ownership, which is enough. Sony spokespeople said: "Cellius will use Sony's Cell chip, which powers PlayStation 3, to create games for the console and content for mobile phones and personal computers." So this venture spans beyond the PS3 itself! That's probably a good idea.
You can check out some more business-oriented details at the original article, but it's mostly information that gamers already know. In any case, this should be a pretty good alliance -- was it Namco-Bandai that was expressing financial difficulty a while back? It was probably Atari... but Namco-Bandai started the whole "we need to sell 500,000 units to generate a profit for our games" deal. Now, if only Apple joined up with these two... iPhoneStation Portable anyone? iPSP... genius.
[update 2: It should be noted that the Cellius organization/project/venture is going to be headed by the mind behind Riiiiiidge Racer, Isao Nakamura, not Ken Kutaragi as earlier stated.]