In very recent times some famous game developers have either gone broke or been taken over by bigger corporations due to video games not selling enough copies which means they do not make enough money to stay in business. There is a minimum amount of copies per game that must be sold to ensure the development costs are recouped before profits are made from the sales. The minimal amount of copies will vary greatly in every case due to the varying amount of time and money invested into developing the games.
One failed game from a developer can mean game over for that development company. Cut throat business and it is not getting any easier.