The whole situation is pretty bad on both sides.

Gamecube is a money loser so you have to have a port of one of your biggest games. At the same time they should have left some of the smaller titles exclusive such as viewtiful joe.

He will probably quite and form his own studio as all of these big influential people do. If he promises to keep things exclusive to nintendo or what ever system he does stuff for then he will get finicial help from said company.

Only time will tell.