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That actually reminds me of Silicon Knights. After their contract with Nintendo ended they decided to do work for Microsoft and Activision, and not only did their post-Nintendo games receive mediocre scores and sales, they were sued by Epic Games for not paying the licensing fees for their use of Unreal Engine 3 and lost (and part of this lawsuit meant they could no longer sell Too Human or that crappy X-men game anymore). Some evidence even suggests that the only reason why Eternal Darkness turned out well in the end was thanks to Nintendo intervening during development to tell the devs what needed to be improved upon.
Also don't forget Silicon Knights are the reason why Blood Omen 1 still lacks a modern re-release, they sued Eidos and Crystal Dynamics over the rights to the Legacy of Kain IP and what happened is SK retained all rights to BO1 while Eidos (and now Square-Enix) kept the rights to any LoK games made from Soul Reaver and onward. Meaning the only way you'll ever see Blood Omen 1 get a modern re-release on something like GOG is if Denis Dyack and co allow it, and they're being pretty stubborn about re-releasing that game.