I asked this about a year ago and the position was that Sun was not going to start up a dedicated game development company, or buy one, preferring to let us struggle away for ourselves. It was noted at the time that M$ have done exactly the opposite, and now have XBox and a clutch of top-rate development houses under their wing, and XBox 2 on the horizon, whilst we wait for the PS2 to get a slow Java implementation and play Snake in J2ME (ok, it’s progressed slightly).
We have to be fair and realise that it’s a very risky business incubating game startups, but M$ have an order of magnitude more cash to throw at this sort of thing until it succeeds, and Sun are mainly just keeping properly afloat without undue risks.
Cas