"What, you have zero reason to act surprised that Tiger Telematics, creator of the Gizmondo and Smart Adds, is filing for bankruptcy in the UK, their country of origin. We've been following these guys since day one and we're pretty sure there wasn't anyone who didn't see their collapse as absolutely eventual; the filing -- submitted last Friday -- surfaced today in apparent explanation to the SEC of what happens to their US operations. It looks like they'll be seeking Chapter-11-like financial protection for now as they restructure their UK operations, and they're expected to cut 50% of their monthly staffing expenditures" 
As Engadget say, it's not great surprise to see the outcome of an outsider going up against the established players in the handheld gaming market. Even embedded GPS could not give the Gizmondo enough mind-share to create a decent market-share. You can see the details of the filing
here, if you're so inclined. Another one bites the dust.........