They'd be hard pressed to pull back much! They'd run the risk of "un-developing" games we already have.
But seriously I had hoped this year they were gonna come out frickin swinging with games coming out the yahoo.
They still might if this is a new decision and they have stuff in the works, but I wouldn't be surprised if that's a short spike or something.
Now I'm wondering if they are more interested in trying to be a Steam box, than a console competitor.