Profits are not everything. Gaining mindshare can compensate barely breaking even or even slight losses because it calls for future investments in the franchise or at least in the same team.
A flop always entices, in my opinion, all of the following three:
- diminishing the perceived "value" of the developers for investors
- diminishing the perceived "value" of the franchise or brand for investors, or failing to establish any for new IPs
- losing money
As such a game like Haze is a flop. A game like Okami is not, nor is Mirror's Edge.