It's all related to how the company does based on the game. If a game could at least regain its dev costs, its mediocre. If it lost money on the deal, its a flop.
Generally, for a Wii game, we're talking about 8-10 mil for a AAA game, so they'll need to hit about 300-350k sales to make it worthwhile.
For a HD game, we're talking about double the number, at minimum. So, at least 600k to make back their investment.
A flop, as seen by a developer, is when they take a loss on the game. Regardless of what people say on these forums, to a dev, its a business, and if they lose money, its bad for business.
So let's reiterate - strictly from a profit/loss perspective, which is the ONLY thing the companies care about -
Flop level:
Wii XB360/PS3







