I hate to be a wet blanket but that's not really what it says in the press release. It's simply saying that Shawn Layden will focus on WWS solely due to a job description change.
Also, I'd like to say that I'm not big on small companies being absorbed by larger companies, especially since the current "2nd party" system is working so well. I don't think it's really needed unless both sides really want to make it happen and understand each other completely. Developers like Insomniac, who enjoy being independent, should stay that way.