It bummed me out. I still kind of long for the days when video games were doninated by companies who primarily focused on said industry rather than some of the largest corporations (Microsoft) and conglomerates (Sony) on the planet. It was inevitable and I like those two just fine, but it feels like the industry lost some of its personality that set it apart from the others.
Overall I was kind of sad as I owned a dream cast and as a kid was more into sega than Nintendo until they lost me with the Saturn and I moved on to the n64/PlayStation. That said, it was much like when Atari bowed out in that it was no surprise as it'd been out of most of our lives in NA for a generation due to the failure of the Saturn to catch on.
Really, it just makes me more impressed that Nintendo is still around... With the kind of money Sony/Microsoft are throwing around and the losses they're often willing to accept, there's not much room left.