According to tvshowsondvd.com:

http://www.tvshowsondvd.com/newsitem.cfm?NewsID=7039

Apparently, Sony is shuttering the Sony Wonder label to focus on its core music business.  Apparently, Sesame Workshop left Sony Wonder in February, and have since cut a long-term deal with Genius Productions to distribute the "Sesame Street" titles.  Other who used Sony Wonder for distribution have also parted ways with the label.

Of course, this now leaves the future of DVD releases from the Sunbow/Marvel library up in the air (Transformers, G.I. Joe, Jem, etc.)

Personally, I would like to see a new round of negotiations with Rhino, since they originally had the rights to issue this library on DVD.  I mean, I would like to see the remaining Jem episodes released on DVD sometime in my lifetime!