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They gave up a bit easily didn't they!?
Not particually, as far back as last September at the ECTS trade show in London (where I was working as a game journalist) it was clear there were problems.
The product had already hit its decline phase and publishers were not interested investing their diminishing returns. Obviously they are keen to maximise sales and minimise costs. With SEGA set to announce losses for the 4th year running and falling interest from prospective publishers...well this has been on the cards for a while.
There are many titles still goinging through the pipeline, some of them will get canned, but unless game unit sales flatline most of them will probably get released.
Richard
Sadly the DC has died young. Long live the PS2! But then there's the X-Box.......