From what I can tell, this will most likely lead to an increase in arcade games by Sega made for the Atomisware. That, by itself, is hardly bad news. I've never been in an arcade that I thought had enough Sega games, and mind you, I've been to Sega World, Osaka.
Taken as a whole however, I can't help but feel depressed about the future prospects of other Sega franchises. My three favorites are Sonic, Jet Set Radio, and Shenmue. With the possible exception of Sonic, it seems unlikely that any of these would be able to make the transition to the arcade well.
Even though Sega has been relatively conservative about online games post-Dreamcast, I was hoping that one of their developers would take the initiative of creating a new online game. Besides their Dreamcast, library, what online games have they released? Two PSO games, Sega GT Online, and Legacy Online (if you count that). Am I forgetting anything? I'm afraid we'll be getting mainly arcade ports by 2005. Not that there's anything wrong with arcade ports, but their console games are what matter most to me.