Definetely not good to hear, but somewhat expected. But rumors about EA and MS have been flying around for quite a while. As of now, though, SEGA seems to be doing all they can to bring themselves back. They've finally came out of the red this year, and they're downsizing/merging their internal development teams to save money. So I think SEGA will keep going until they absolutley have no choice, cause right now SEGA is still kickin'.
But yah, if it happens MS is my prefered choice over EA, cause EA suxors.