When publishers report a loss, they're reporting a loss based on what they expected the game to sell at and it didn't meet those standards. Usually the game in question didn't lose any money, but to the publishers, the game did. My assumption is that the publishers are handing out bonuses before the game proves its worth on store shelves. These developers and publishers want more than they deserve. Hell, they already get more than they deserve. Bobby Kotick made over $60 million in 2012. Several people in EA make over a million a year. If these publishers are losing money, they it's because they pay their higher ups way too much with these imaginary bonuses, etc.
Maybe developers and publishers should follow some advice from a line on The Devil's Rejects. "I set my standards low so I'm never disappointed." Don't expect every game you release to sell millions of copies, because who knows if you'll even sell half a million.
