The recent Need For Mirrors and Gridlok releases and the Prolix and Sub Zero EPs all show Playaz is still on form. Sure they let out some duds from time to time but I definitely wouldn't say they've lost it.
Havn't bought any playaz releases in a looong time so wouldn't affect me, all wah wah womph bits of plastic that would see more use as a frisbee imo.
Am hearing this or at least rumours about this with more and more labels lately, despite people saying vinyl sales are on the up. Might just be some big marketing thing so people think 'shit, last release, must bag!' Or it might be the last thing they press. Who knows.