All right, let's suppose for this post that this was true.  What conclusion do you draw from it?

That they are responsible for their downfall. First, not asking for enough. and 2nd, not delivering a good game.

They both sucked arse?

their last games are PS3 exclusive games.

I don't necessarily agree with the post you quoted, but the difference is that the development costs (and hence money loss) was higher than if it were a 360 exclusive, and moreso if it were a wii exclusive

And I believe frybread was simply answering the question "what do the two studios have in common?".. the only other thing I can think of is that they have both only released one game this gen (each of which, as pointed out by frybread were PS3 exclusives)

Difference is, last generation it wouldn't have cost so much money to make the game.

wont nintendo bail them out seeing as they were making a game for them?

Dammit. We adanced too far too soon. The technology was there, but we couldn't effectively use it yet! The HD consoles shall be the end of all things!!

Not likely.  Nintendo's motto is: If you purchase a studio, it doesn't mean you get the good people to go along with it, you just purchase the name.  So they might buy the code and farm in someone else to finish the game if it was good or they'll just drop it and walk away.

While I can't speak to the first one (as they don't seem to be the only ones to have drastically underestimated the cost of game development this generation), we can agree on the second point.  Plus, I'd also add "abandoning Nintendo this generation" to that list :P  I bet Eggebrecht is kicking himself for that decision now.