Unlikely they meant the begining of 2008 more likely Christmas Squarenix employs over 3100 people. Grasshopper employes roughly 48 and they were able to release No More Heroes in about a year... It's entierly possible for SE to work on all those projects simultaneously especialy several of them are just being polished rather than actively developed(DQ9 and I read about a few others)
End result: Possible but I'd think late 2008/early 2009
To any naysayers, FF13 and DQ9 have been getting so much attention they could easily sneak in a big production until it was near completion.