Yep. It all seems to make a little more sense now. He sells out the oracle. Maybe she was expecting that. OHHHhh, I think she was. That's why she was "in hiding." Remember Neo goes to look for her in the apartment but she wasn't there. Then when they do meet up she's got a body guard and she's meeting him in some park. I guess she was hiding from mero's goons who would be coming to get her. At least until she could talk to Neo, because she had to get him on the path....
Interesting. Things seem to be coming together. By the way, here's the talk that the oracle had in the game:
Ghost : Can you tell me what happened to you?
Oracle : Two programs that I trusted sold the termination code of my original shell to the Merovingian.
Ghost : Why did they do that?
Oracle : For love. For the life of their child.
Ghost : You knew about it, and yet you let it happen?
Oracle : I had to.
Ghost : Why?
Oracle : Because the child is important. I can't tell you why, but I believe one day, the child will change both our world and your world forever.
--and as Niobe it goes: ---
Oracle : As I said, you may not recognize the face, but who and what I am beneath remains the same.
Niobe : Can I ask what happened?
Oracle : The Merovingian warned me that if I made a certain choice, it would cost me. He is, among other things, a man of his word.
Niobe : What was the choice?
Oracle : The same one you yourself will have to make -- the choice to help Neo or not.
Cool. If anyone else has any clues or ideas please throw them out. All our heads put together are better than one.