Take a look at http://en.wikipedia.org/wiki/Gamma_function
The gamma function is a generalization of factorials, valid not only for integers.
Since gamma function has singularities for all negative integers, something similar can be said about factorials.
The factorial operator is just a special case of the gamma function.
In terms of this function, your formula
(x+1)/y = x+1
would be
G(z+1) = zG(z)
The complete definition of the gamma function is a complex integral over the half line (0, inf), and that can be extended to all complex numbers except the real negative integers.
Fun fact: (-0.5)! = 1.77245... (the square root of PI)
wow that really answers just about everything but my question. It says in the second sentence of the wikipedia article of Gamma functions that they are still ONLY defined for positive real numbers. My question was regarding a possible definition for negative numbers. I am not going to read the rest of the article.