FUSE is going to bomb hard. 

The game comes out in 7 weeks and doesnt even have 15k pre-orders on either system. http://www.vgchartz.com/preorders

The game has no hype. No marketing. It has been forgotten and lost. Insomniac went from being a medium fish in a medium pond with SCEA, to being a small fish in a big pond with EA. 

Ratchet and Clank sold over 6 million on PS3, not including Digital Sales (Quest for Booty was PSN only)

Resistance sold close to 8 million.

Now FUSE... Insomniacs multiplat experiment in which they thought they could double their sales.... will have trouble breaking 1 million sales on both systems combined.

So where does Insomniac go from here? Do they go back to Sony? Stay with EA? Indie? Mobile development?

They will be fine. One game is not going to kill them. Fuse could turn out to be great and word of mouth might make it a sleeper hit. Who knows.

Even if it does lose them money they can write it off and use everything they learned from their first multiplatform game to make sure their next one goes more smoothly. They probably already have their next multiplatform game started to some extend and slating as a next gen game.

Right back to Sony, where they belong. Serious answer, I think they should go back to making the types of games that made them a great developer in the first place. Fun, quirky titles that don't take themselves too seriously. Fuse just looks like another bland, boring shooter with no life in it.

I agree with everything you said starting with "Serious" and ending with "seriously".

I'm looking forward to Fuse, I think it looks good. I'm not so hyped that I'm preording it, but if it gets decent review scores I'll probably pick it up. I'm just hoping that it's not so focused on co-op that it's as bare bones as Left 4 Dead. If it has a real campaign with a real story I'm in. If the reviews are good.

thats not true. one game killed many studios.

Sure theyll be fine.

The question is, why would they continue being multiplat if FUSE bombs badly?

They might not even crack 1 million sales, and then needed manpower to make it for 2 systems. They were doing better sales on PS2/PS3, with less manpower needed. 

the game revolves around co-op and you need to use the swap character option if playing single player (or even with someone else). The game is built around those two things

I'm not talking about the gameplay. I like co-op and waping between characters in singleplayer is fine. I'm talking about the campaign. I'm hoping for Gears of War instead of Left 4 Dead. They are both co-op focused games, but Left 4 Dead barely has any story at all. Gears of War is co-op with a real story and real cutscenes with characters saying real dialogue and an actual plot with a begining, middle and end.

You're being incredibly optimistic about this game's, and company's, chances. Weird. Are you a big Insomniac fan?

resistance 3 is looking pretty good now, when compared to this