Damn I should've chimed in earlier!
I had a feeling that this Sammy business wasn't going to work. I just didn't think Sega would pull out at the 11th hour... I just ranted and raved about this a week ago, Namco would be the ideal choice in this situation. They both make similiar games, Namco is pretty stable despite flagging economies, and Sega will get the long-term finacial security they need.
But Sega itself is not calling the shots on this one. CSK (OR CKE some 3 letter acronym) handles their business decsions, so who knows, they might sell their souls to M$ for stability. They might knock at EA's door and grovel at their feet (we're sorry, save us please! Onegaishimasu!) Hell, if they walked into in Namco and said "We're sorry, you were right, I was wrong, lets get married errrm lets merge." It wouldn't shock me
Nintendo's been pretty silient on this one, but again as stated earilier, it looks like Sega just wants the money without the responsibility. They could scoop 'em up, but do they want to?
The last option has too outcomes: A) they stick it out alone, and some how manage B) declare bankruptcy if that's bad if it doesn't pan out. Looks like we got our selves a little soap opera to call our own...