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Here is some more that n-Space said that isn't in Joecool7's post:

However, he admitted that the studio's primary development focus, the current Nintendo platforms, had become a challenge.

"The Wii and DS markets have nearly collapsed and 3DS is a brave new world the publishers are excited about but also very cautious to enter."

Source: http://www.gamesindustry.biz/articles/2010-10-11-n-space-denies-closure-but-admits-wii-ds-markets-nearly-collapsed