But if they took down SMD&GC to make way for something new, it could be an app that doubles as an online store of sorts for their older games?
Yeah, it could be. It could be nothing too though. All of this is still just a speculation.
From how I heard it goes... Ben Hurst had plans to make Season 3 of SatAM into a single TV special. Ken Penders heard of this and made a phonecall to Sega telling them that Ben Hurst had plans to make a cinematic film of Sonic without their consent.
He then proceeded to pitch his idea for a Sonic film, called "Sonic Armageddon".
https://kenpenders.com/sonic-armageddon-or-what-a-long-strange-journey-its-been/
Silly Penders.
Without him involved, even if Ben Hurst pitched his plan probably SEGA would still reject it.
And if Ben made the film alone without their consent, as long as no money involved, they would just treat it as a fan film.
Of course if money was involved SEGA could always send their lawyers, but it's not because of Penders telling them to.