The thing that confused me about Square Enix is they had a pretty committed and relatively sizable niche in the west that bought their titles. As long as they continued what they had been doing in the PS1/2 eras (though I think their decline started in the later PS2 years, but that's just me), that likely wouldn't have went anywhere.
But they really, really want a piece of that "westernized game" pie, but they fail to realize that no one really wants that from them. They alienated their established fans pretty well this gen with a disappointing, linear game, a sloppy MMO, a game that's in what appears to development hell for a few years, and pretty much handing off Dragon Quest like an unwanted child.
And when they do deliver something for them, it's largely under the radar. Dissidia 2 got some attention, but Tactics Ogre slipped out without much advertising put into it. I only ever saw a banner on Gamespot (granted, it was there for like a month, which is a lot better than what they did for, say, DQ5). And that's a shame because that's just the kind of product you'd expect from the SE/soft of old.
I'm sure at least Deus Ex won't flop on them, maybe Tomb Raider too. But they really have to start doing what people knew them and came to like them for.
DQ10 will help them a little, but they have to realize that should anything happen to any of the Big 3, that gravy train is over. They aren't getting any younger, either. I think Akira Toriyama is the youngest of them? They have to get back on track without relying on the occasional DQ for a guaranteed buck.