Resident Evil 6 had 600 people working on it. Mismanagement is a problem with any company.

More responsible spending when developing games
Focus more on creative aspects, innovation and gameplay mechanics rather than high production values
Don't develop a game that requires unrealistic sales to turn a profit

THIS.

There are plenty of great games this generation which cost less than $30 million, it's not gamer's faults if a company can't manage a budget (also doesn't hope if a game is critically panned like RE6 was).

The game made them over $100m. Unless you think that development and marketing costs were above that amount, it's clear that it made a profit.

RE5 development costs were over $20m about 6 months before it went gold.

I'm certain Capcom made a profit with RE6. However, that profit was probably much lower than company executives expected. Unless other Capcom games made higher than expected profits, it's most likely that the lower than expected RE6 sales offsets much of Capcom's investment capabilities this year.

5 million RE6 copies sold is not considered bad. Just much lower than expected, which in many cases is just as devastating.

With that in mind, companies should always stick to conservative estimates, and base investments on such estimates instead.

I completly agree with this post. They spend way to much to develop video games these days and barley make a profit from it. If they keep doing this,then the there will be another video game crash. I mean we've already seen all these game studios close this gen. More and more attention will go to mobile and simple downloadable games.