what else will Oracle do with the Sparc line?
No matter what, Oracle should cut their losses on the line - it's not in their core competency.
The only thing if/that makes any sense is that Fujitsu takes the legacy Sun engineers from Oracle and continue developing the product line. They are already manufacturing the equipment, so they have an investment to make a decision about.
The win/win is that Oracle lets Fujitsu continue developing and manufacturing the existing line as they see fit until demand drops off, with Oracle collecting a margin. Further, Fujitsu should develop for Oracle a line of appliances customized to their applications so they can keep up with other new merged companies, ie, SAP/Sybase...
This would allow Oracle to sell the vertical solutions that are competitive, yet not have the hardware risk, and Fujitsu gets the product line, plus a captive product set to expand into.