Hollywood was always only a small part of SGI's customer portfolio, albeit a very prominent one. Once that section of the market fell away to Linux/Windows machines, SGI pretty much focused on the high-end super computer market, and visualization systems for film and tv. Problem being, that market couldn't sustain enough money to generate the type of research SGI once had for the vast range of machines they had going.
I guess they are consolidating their resources, and focusing on Governmental, scientific and defence contracts; while keeping a low profile for those who need very powerful media workstations (where they still have some of the fastest machines out there), all the while transition from the MIPS/IRIX era to whatever they are planning to do.
If you're going for a used SGI, I'd probably say an Octane.
