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Regarding how they remain afloat, it's probably a matter of having very limited print runs, constant ports to new systems, and praying that the next original title doesn't sink them.  They can't count on handhelds anymore, since the PSP is dying and the 3DS costs as much as a Wii game, but they are focusing more on PS3 exclusives which, as far as I can tell, are graphically close to PS2 games.  It'll be interesting to see how much longer they can keep up the juggling act...