TBH, Zipper is, in many ways, the tech powerhouse of Sony -- they have made unprecidented advances in network tech, as well as usage of the Cell for non-rendering tasks -- think of all the CPU muscle required to run the game logic, physics, and animation for 256 players at once. Even the SOCOM 4 co-op has a *really* impressive number of pretty intelligent AIs. I would even go as far to say that their 3D rendering tech is the best there is -- full 720p, at 30 Hz, with MLAA... that's pretty dang impressive. That, with all the networking, animation, ragdoll & physics, etc... is simply outstanding.
Pressing the reset button on such a team would be like folding a Draw Poker hand that has a pair of aces, before the draw -- i.e. it'd be foolish. What Zipper needs is good creative and design direction. They have some incredible engineering muscle -- they just need some creative juice to fuel them.