Clover Studio, a development studio under Capcom, was responsible for the Viewtiful Joe franchise, on both DS and home consoles (as well as Sony's handheld thing), as well as the recent success that is Okami. They have an impeccable track record in the industry, as not only have their games had incredibly stylish graphics, but a downright fun playability.
This really does come as a shock to the gaming world, as their games sold well. So does this mean we won't be seeing a sequel to Viewtiful Joe: Double Trouble on the DS, as well as other Viewtiful Joe outings on the Wii, or even a port or sequel to Okami? Hard to say, but we are fairly certain should these see the light of day, they will not have the same high level of polish and replay values of the previous titles. But still, why did this happen? Next Generation recently conducted a Q & A with Clover Studio, so you can get the word directly from the horse's mouth here, should you wish.
Truly, it is a sad day in gaming ...