Poor management strategies and changing consumer perception with regards to "value" is what is harming companies.
If everyone is making a short action game, why the heck do I have to buy your short product versus someone elses? Plus other perceptions about the industry trying to nickel and dime it's consumers only hurts everyone else's brands by simple association.
I am more surprised that not one American publisher has tried to differentiate themselves by putting out actual high quality product, instead they seem more caught up in the gimped product craze. Which just hurts everyone.
On the other side of the coin, several original amazing games have come out and they made no money because people didn't want to buy them. Didn't matter how great the game was, it still sold like crap. Why take a risk like that, in this economy, when you can churn out a CoD clone and hopefully make your money back.
Don't even bother trying. You're just gonna fail and look stupid anyways.
So EA put up $30M to pay for Amalur, they took all the risk, and a 70/30 split isn't unusual. It's also common for the dev to see no royalties until costs are recouped. If that's the contract 38 signed then why on earth shouldn't EA get what is owed them? They are a business not a charity. Basically 38 got in way over their head with the MMO and Rhode Island, then tried to keep things going with a console game which would have needed to be a Bethesda sized hit for them to survive, but instead sold about typical for most new IP's.