Man, one time I ended up volunteering at a weekend youth event, and this other leader they put me in a room with was friends with my wife on Facebook, from college or something, but I'd never met him. Weirdest conversation of my life:
"So, how was your honeymoon in city?" "Oh, really nice. What was your name again?"
I imagine that's what this horror house would feel like. Was a nice guy, honestly. I've since forgotten his name again.
I suspect this is the end for now. MS won't be able to quell anticompetitive fears on another large buy for at least 5-10 years, IMO, and with the economy down overall, few companies will be looking to spend big money. Embracer not getting their payout is another scare for the industry too.
That said... it's likely only a matter of time, and this consolidation will likely continue eventually. Hopefully small indie studios continue to thrive to fill the niche.