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Dodging the ongoing conversation a bit,

I see no reason why they shouldn't be ABLE to recover. They still have some well-known, high-selling IPs, and abundant experience in working with nearly every platform currently available. The bigger issues are lack of direction at the top, and the exodus of talent in previous years. You don't need a big-name to create great games, whether new or old IPs, but they don't seem to have adequately replaced the likes of Kamiya, Mikami, Inafune, etc. The next group of folks haven't been terrible per se at creating new IPs, but Dead Rising and Lost Planet are nowhere near as profitable as series that came before them.