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Soriku said:

I don't think that many people expected really good sales for MW. (Overkill devs said the game sold well and they wanted to make a sequel so that made some good profit for them and it's still selling.) It's a game by devs that have had crappy sales in the past and is black and white and gory, there's not a big enough audience for that type of game anyway. Plus I don't think the game pushed any big graphical boundaries to make it cost too much.

At the same time though, Clover has a long history of either underestimating development costs and/or overestimating sales potential. I'm fairly confident that they thought Madworld would do better, even if it was foolish of them to think so.

psrock said:

EA had major bombs as well, they had a terrible holiday period. thus contributing to their losses. But most of you underestimate the cost to make games for the Wii as well. It's smaller, but as the game gets bigger so does the cost.

 Yes, but this only reinforces my point, as their major bombs are titles like Dead Space and Mirror's Edge...i.e. games that had tremendous raw sales, but from what they've told us not enough so to make those games profitable. You're correct about the second part, I think, hence my comments about Madworld needing to do more (from what we've heard Overkill's doing well enough).