Ultimately it's not a death sentence, because 550M is still pretty low for a pink.  However, they are reaping what they sow by not updating the public to what's going on.

We've been waiting for news on the Naked Gun and Merlin games for weeks now, and the unannounced/unexplained 57% increase in shares makes the last two days' results fairly predictable.  They could have mitigated some of the damage and chose not to.