It's still a sales flop in my eyes. Weren't they working on the game for like five years?
Now before you jump on me for calling a game that sells one million copies a flop, I'd like to remind you that I consider Super Mario Galaxy a flop as well.
A single player exclusive for the Xbox 360 selling 1 milion is not flop. Alan Wake had little marketing, released on the same day as Red Dead Redemption and started off slow on sales but really developed legs. It was not the perfect storm, but it did not "flop" like many peopel said.
Keep in mind digital sales aren't included. The DLC heavily hinted to a sequel and Remedy has really welcomed the idea to more Alan Wake so they are obviously proud of the product. And yes it did take ~5 years to finish but they said they weren't working on it the whole time. Now they have the engine and the fan base established to make a really great game.