DOOMED. Games have never been delayed, people have never moved around in the industry, and games have CERTAINLY never been cancelled.
SOONY IS DOOMED.
Setback != "DOOMED"
Games are delayed and games are cancelled, yes. I'm not sure how people can pretend that cancelling a project you've poured millions of dollars and years of time into can't fairly be termed a "setback". The word isn't even much of a pejorative. What would you prefer we call it? A "joyous reallocation of resources"?
Whatever project Black Tusk was working on got canned when they took over Gears, there have been a number of high profile departures from 343, Quantum Break got delayed to 2015...
Those would be setbacks too, though it's probably worth noting that Sony Santa Monica had been working on their game for literally years and they fired most of the staff associated with it. If Sony Santa Monica had cancelled their game because Sony picked up a big new IP and wanted them to work on it, that would probably be a different story.