This is totally related. They mentioned they canned a bunch of hardcore Wii titles, not a bunch of hardcore HD titles. They usually can the ones eating up too much money...
The majority of their R&D on the HD titles they released recently was spent 1+ years ago, bud -- you, know, when they were profitable. A bunch of devs probably believed they could develop serious Wii games for dirt cheap, THQ bit, and then a zillion rising-cost titles kept demanding more money, because "oops" they underbudgeted.
You don't seriously believe their recent losses are the R&D costs of their titles that hit the shelves that quarter, do you?
oh please where do people like you come from? do you honestly think a loss of $431 million is due to canned Wii games and Wii R &D? Hell if they spent that much on the Wii then we would see 10 x AAA titles at $43million each.