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Mudface said:
Why would a game not make money on 400,000 sales? That's $10- 20 million in revenue, and it would all go straight to the publisher/ developer, rather than a console manufacturer taking a cut. Stardock's games have made a mint for the company on those sort of sales figures, and any company making a game with a budget of a few million will make decent cash.

 

Console games do cost more but it still costs a lot of money to make a game.  Not all of that money goes straight to developer, there are a lot of costs to recover.  I my home I have the costs for a last gen game (PC and console) sitting around and I can list those costs assuming I remember to come back to this thread (I'm pretty absent minded a lot of the times, especially after long days).