If I read this right they won't "kill" MIPS outright but the IP licensing biz will surely be dead? Who is going to license MIPS cores from a major chip competitor? They may continue to issue "MIPS architecture licenses" for those who design their own MIPS cores.
That will lead to dilution of the MIPS software ecosystem with multiple proprietary cores which each require different tweaks for software to run on them. This is exactly why Linaro was created for ARM to reduce that problem. For example they are working on a single linux kernel that runs on multiple vendors' ARM-based cpus.
Broadcom and others could have bought MIPS back in early 2000's when the stock price was as low as $1.25 per share but they wanted MIPS to remain an independent IP company not controlled by one vendor. The reason companies license a core instead of designing their own proprietary core is to exploit a proven architecture and its software ecosystem. Also reduces training cost because you can readily find engineers who already know that architecture. Same reasons you license a RTOS instead of creating your own. But if its controlled by your competitor you won't use it. And if only one company uses it the software ecosystem won't build up critical mass.
Like I said before MIPS won't die but it won't be a major widely known cpu architecture anymore. It will become lesser known like PowerPC. See my previous comments about why MIPS lost to ARM at end of this article:
It's all about the software people, not the hardware.
MIPS architecture is seldom been used in Embedded system as I know in China. Comparing with ARM, it lag behind much.
It is not a bad thing to be purchased. I plan to obtain some information about MIPS to learn, now I change my mind.