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depends what you expect from the project... I wouldn't give more delays for a crappy party game, but for the crown jewel of my company's catalog of products, I would give as much time as possible.
Firing the team is dumb it would put back the project even further. If you feel the people are incompetent, you do that at the beginning not at the end of a project.

just look at games you know have been released on time although there was presure to finish them and games that were delayed again and again... you'll see the later are much better products. (that said, games finished on time without presure are the better solution, but then, there is a hype effect that comes with delays).



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