The full story so far
During the 32-bit wars Nintendo felt left out and they knew that they couldn't win. In order to survive(even with the immortal Sakurai at their side) they made a deal with the devil. The devil however, demanded sacrifice. Nintendo declined and created the first D.R.E.A.M. Destroy Read Extract Access Memory, a powerful robot that could do their work for them. It would destroy or kill a target(could be a person or a computer) and absorb its knowledge to create the ultimate machine. The DREAM calculated and decided the direction of the company from that point forward. The DREAM had decided to take out Gunpei, as he had left the company and they needed his knowledge. His death shocked Nintendo's management. Despite his ambitions to deal with the devil, Yamauchi had not forseen this. The DREAM soon took over and decided to manifest itself into the company. It took form, something Nintendo dubbed project REALITY.
In order to save the company Nintendo had to fool the system they had created. They set out to find potential targets, those who could not be killed or controlled by the DREAM. They created the famous DREAM TEAM. The DREAM cooperated with them and went to Rare. The strategy worked, the DREAM would allow Rare to gain technological advantage. Nintendo unaware of what they had set in motion was statisfied with the results. The DREAM however would soon make a move on Nintendo itself. Rare games soon started to look and sound better than Nintendo's own and Donkey Kong Country outsold Yoshi's Island. DREAM sabotaged the Sony-Nintendo partnership(Nintendo had tried to free itself) and set out to launch Project REALITY. The DREAM worked with perfect calculations but its power was limited to Nintendo's offices and decision making. Nintendo realized they could 'hurt' the system by cutting costs. DREAM was furious, he kept improving on Rare's games in order to 'beat' Nintendo.
Nintendo however, had created Pokemon in secret. The DREAM could not handle a product that was superior to his own. He did not understand what made Pokemon sell so well and to be fair, neither did Nintendo. It worked DREAM was crippled but so was Nintendo, stuck with the GameCube and a Gameboy with an invisible screen he had created in order to destroy them. Nintendo was all but lost when the Stampers made their move. Yes, they too were calculating, they knew nothing about DREAM, Nintendo hadn't told them and their employees were unaware that their minds were being controlled. Tim and Chris however, couldn't be controlled. When Nintendo ordered the development of GoldenEye to be halted, they didn't listen. When Nintendo gave them deadlines they didn't listen. So Tim and Chris weren't brainwashed and sold the company to Microsoft, along with the DREAM in a less powerful form, still trying to figure out the secret behind Pokemon...
Needless to say DREAM failed, it was left broken and battered. A shadow of what it once was. It soon decided that it needed to split itself in multiple units in order to survive and maintain. DREAM was split into five different forms. D went to seek Denis Dyack, he would surrender his will and company to D in order to survive in the one console future DREAM had in mind. R continued to work at Rare, never recovered from the Pokemon incident and created one failed product after the other. E went to Electronic Arts where it remains to this day. A set out for Activision, created the Call of Duty brand and still works together with E in order to cover the world in military FPS titles. M on the other hand continued to calculate, day in day out. It wanted to destroy not only Nintendo or Sony but the entire industry. It arrived at Microsoft, tried to kill gamers too with faulty power bricks and RROD's that would set houses on fire. With agents and moneyhats M tried to keep developers like Treasure, Sakaguchi, iNIS and others away from Nintendo and Sony. It failed, luckily it could only destroy Microsoft's own developers. It continued to work, day and night and found a way to destroy the gaming-industry... KINECT. And now the moment of truth is at hand.