hmm, in bad shape still? They were in bad shape 5 years ago if i remember correctly. Which seems odd because they could survive on FF11 subscription support alone. The subscription rate was 2 million in 2009, i can't imagine that being sustainable, although mmos tend to have legs. I couldnt tell you at what rate there would be abandonment vs adoption. But thats 13 dollars times 2 million just in 2009. Also, Square-Enix is testing out next gen engines, but wouldnt say which platform, so its either going to be ps4 or xbox3 or Wii U. They can however release their game on Wii U first, unless Sony or Microsoft decide to launch against Wii U. I think I'd be overly-optimistic to assume it was Wii U though. However, it is possible Square Enix wouldn't say what platform it was just to appease Sony before it kicks them in the nuts. They would too, afterall FF7 target platform was originally n64.
Also, an adjustment to the idea that Nintendo titles do better than all other games they compete with. These are the established franchises. Xenoblades is in no way established, even people who know about it wouldn't buy it in its current state. Also, I don't think this is true of launches either. It has worked well for Ubisoft. Poorly rated game like Red Steel sell well at launch, and this is mainly because gamers at launch will buy almost anything. You are pretty much guaranteed to be a million seller at launch if you can be one of the first 20 titles. Also, some other math, if you sell more than 600,000 copies then you've broken even if your budget was 30 million.