What developer that you had high hopes for or was even your favorite before that failed you this generation in what they put out as games?

I would have to say Sqaure-Enix, they were once my favorite but company now I couldn't care for anything they come out with, they don't seem to understand what the consumers want and they keep messing it up. I haven't played a good game by them in  over 4 years or so, just dissapointing compared to the pure gold they use to release. I'm still holding on to that tiny little glimmer or hope that is Versus though, oh god please release and be good.

Anyone else?

Lionhead. After Fable 2 I didnt pay attention to the rest.

Team ICO. Where the fuck are your games?

Rare, Rare, a thousand times Rare.

I'm not sure that they qualify as a developer at this point. They're more of a non-developer these days.

OT: Probably Square-Enix. I actually still like what they make even though they're nowhere near their glory days, but their inability to release games in a timely manner (or at all on PS3 - I'm looking at you, Last Remnant) is a source of great annoyance for me. They are still a kick ass publisher, though, thanks to their western side.

Polyphony - Like 5 years of development for what was a par at best (arguably sub-par) Gran Turismo game? Come on dude. I still really enjoyed GT5 so I'm not complaining too much, but I expected a GT5 much sooner like 2009ish and by now I'd expect a GT6 as well.

Edit: Also a couple of the "features" advertised for GT5 were a letdown. Like the track creator they advertised which was an absolute joke, not a track creator at all, calling it a "track randomizer" would be more accurate. You didn't get to create shit. 

Zipper Interactive

Team ICO - Has no gamez?

Nintendo - Zelda, Metroid, and Mario don't hold a candle to their predecessors from previous gens (imo) and I haven't seen any new IPs from them that I enjoy much.

Rare - Banjo Kazooie N&B was one of the worst games I've ever played (with hopes that it'd be more like the originals) and I haven't seen a single game from them that I've enjoyed this generation. They used to be one of the greatest developers ever. They'll never be who they once were, as too many of their key staff left when they were bought out by Microsoft. :(

Capcom failed everyone this generation.

I'm actually pretty happy with this gen :D All I could have asked for was Wii HD :P