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Alan Wake is not a flop. There are thousands of games that go into the bargin bin, discount, etc. and don't sell anywhere near 1 million copies. Not to mention that the games is digitally bundled with the Xbox 360 itself and is available on Games on Demand. Sales may not have worked our perfectly, nor did they get the most money possible out of Alan Wake but it is not a flop.

Remedy said it is up for making more in the Alan Wake world, they released 2 downloadable episodes and the ending heavily hints at a sequel.

 

Alan Wake did not reach full potential, but it had legs and by word of mouth and good reception it managed to turn out into a pretty successful product.