So no more Shenmues or Houses of the Dead. So long to Bayonetta, Phantasy Star, Golden Axe, and Jet Set Radio (which may no longer be coming to Xbox Live and PSN now). Goodbye to Panzer Dragoon, Virtua Fighter, Rez, Space Channel 5, and so much more.
I'm sure Sega can employ about 20 people and churn out a couple of shitty Sonic games per year and survive, but the Sega we knew and grew up with is effectively dead. Incidentally, I find it more likely that Nintendo will buy up Sega purely for the Sonic rights, and shut down everything else by 2013. Still, thank you, Sega. You may have been a ton of terrible decisions and games, but you gave me the Dreamcast and the original home port of Soul Calibur, and for that, I will always be grateful to you.