It was quite shocking to hear that Sega decided to close their Sega Racing Studios. I understood the financial reasons, but it was still a damn shame to see such talented developers be shutdown. Their most recent work was Sega Rally Revo which is a solid arcade rally racer. Fortunately, GRiD, Dirt and Colin McRae developer, Codemasters were kind/wise enough to snap up these guys. A happy ending.
Not so happy news comes with reports of several big wigs leaving Retro Studios. Retro Studios brought the Metroid franchise, not only into the 3-D world, but into first person view as well. Most importantly, it was a successful transition. Hopefully, they will continue to flourish without those key folks.