what happened to Sierra's Dynamix division:
Extract fro Wiki on Sierra Entertainment:
On February 22, 1999, Sierra announced a major reorganization of the company, resulting in the shutdown of several of their development studios, cutbacks on others and the relocation of key projects, and employees from those studios, to Bellevue. About 250 people in total lost their jobs. Development groups within Sierra such as PyroTechnix were shut down. Others such as Books That Work were relocated to Bellevue. Also shut down was Yosemite Entertainment, the division occupying the original headquarters of Sierra On-Line. The company sold the rights of Headgate Studios back to the original owner. With the exception of the warehouse and distribution department, the entire studio was shut down. Game designers Al Lowe and Scott Murphy were laid off. Lowe had just started work on Leisure Suit Larry 8. Murphy was involved in a Space Quest 7 project at the time. Layoffs continued on March 1, when Sierra terminated 30 employees at the previously unaffected Dynamix, 15 percent of its workforce.
After 1999, Sierra almost entirely ceased to be a developer of games and, as time went on, instead became a publisher of games by independent developers.