Eh it is a shame, but I suppose we'll have to see who has the last laugh. Nintendo puts out "weak" hardware, survives the crash, Epic puts out a engine that "only doubles developer costs!!" not quadruples it!" and developers rejoice!
Meanwhile... The bank prepares all those foreclosure notices as one by one these publishers/developers begin going out of business, following THQ all the way down the drain. It's pretty much writing on the wall at this point. It's like watching a bunch of people cruising along on the Titanic laughing at Nintendo as they abandoned ship.
Yes, just like how blockbusters crashed the movie industry.