How isn't it a flop? It was a game that was in development for five years and it has extremely high production values. It sold less than 500,000 units in it's first month and the price of it plummeted not long after release. It also had a haggard development cycle and we don't know how many times they had to recreate asstes or just start over certain aspects of the game. It's a flop in the same way that Heavenly Sword and Valykria Chronicles were flops, it could leg it to 1.5 million, but that'll be at the price of $20 and it would take a span of two years to do it.
I'm sure (and hopeful) that we will see a sequel and I'm confident that it will perform better, it's just a matter of spending two years getting the first game into people's hands and getting people to know the name, similar to what happened with Uncharted, Dead Space and Little Big Planet. The DLC bundle will work wonders and I'm confident that Alan Wake 2 will have a much larger launch and will be a much more succesful game.
Bet with Conegamer and AussieGecko that the PS3 will have more exclusives in 2011 than the Wii or 360... or something.