It looks like Sega might be thinking about joining the M&A party according to this interview
over at MCV. It's been a big year for companies buying other companies as EA bought out Bioware/Pandemic and Activision and Vivnendi got merged together so this train of thought makes sense.
Picking the right partner is the hard part though. Atari and Take Two come to mind as potential buy out partners but both companies have financial and other issues which might be turnoffs for a potential suitor. It will be interesting to see what happens in 2008.