SEGA is to officialy announce that they are longer going to develope for the Xbox, games in production are going continue and be released, following their release no more games will be scheduled for the machine.  
 
SEGA will then continue to allocate 60% of it's development resources for the PS2 and the remaining %40 for the Gamecube.  
 
The software which is already available on Microsoft's machine will be ported over to either of the two systems.  
 
Exactly which one will get which software is information which is not available at this moment in time but will be announced with the rest of the announcement at this upcoming E3.