You can't be serious. What about all their other games that are huge successes? EU3, VK2, HOI3, CK2(this is a massive success IMO)
They aren't going anywhere as a studio, and it's going to take more than one botched game to bring them down. They have openly stated how embarrassing this release was for them. You don't come out and say that unless you care. You won't hear EA saying that kind of stuff. We can say unbiasedly that this game went wrong and it has some large flaws. We can also criticize paradox for releasing it, but to say they are going to fail because of one game is a bit of a leap.
As long as paradox continues to listen to it's customer base it will have my money. I can't think of another major studio that communicates with customers as well as these guys do.
Paradox Development Studios who make EU, HoI, Vicky and CK are not actually responsible for publishing titles from other developers.
Paradox Interactive publish EU, HoI, etc... AND titles from other development studios like Kerberos' Sword of the Stars, Neocores King Arthur & InoCo's Majesty & Warlock games.
The two entities though closely linked are not involved in the actual development by other studios.