I believe that 1up will go on, but we can see that a lot of the staff is being laid off, and I don't suspect that means that they're being replaced with someone new. I can't foresee that this will show any improvement in the short future for readers.
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1UP will continue on, and from what they're claiming they won't be changing the way they do things, they'll just be doing a whole lot less in terms of the podcasts, the shows, etc. So the editorial direction will remain the same - UGO is apparently letting them do their own thing content-wise - but there won't be the same volume of cool stuff.

If you're really sad about the podcasts being over, a few of the 1up people have already started a new podcast. You can download it here:

http://www.eat-sleep-game.com/news/2009/01/08/as-promised-episode-1-of-rebelfm/
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