Tapwave Zodiac Going Away?

Tapwave, a company made up of some ex-Palm execs, announced their idea for a Palm-powered handheld gaming device almost exactly two years ago. It apparently took that long for the company to realize this is quite a tough market, unless you have the marketing muscle of a Sony. So, with that realization comes the plans to get out of the business of selling a handheld device to the consumer market, but to focus on building co-branded devices that no one will ever use. Basically, it sounds like the company is trying to shift business models, but isn't quite sure what business model will work. All they know is that the current business model clearly doesn't work.