I wouldn't call it a flop, but considering the hype (though IMO not deserved) this game got, it's sales are highly disappointing. 

OMG a terrible game got terrible sales on a terrible system!

@eddie raja  that might get you banned

Well. I would say it's a hit. Yes I'm serious.

TC is not really a good game and it's not from a strong IP or are the developers well known. So selling 500k of that is pretty good in my opinion. It outsold games like Metro 2033 and Vanquish for example. Hype on the internet isn't really relevant for sales. We're not getting a sequal for nothing people.

Still I think C2 will sell a lot worse(300k max).  Sega seems to have a lot smaller marketing budget for this game and nobody gives it attention.

They must be ok with the sales if they are making a sequel, so I guess 500k is good for them.

Sega and High Voltage definitely made some money on this game but it's not great... I hope for them Conduit 2 sells better or else you can kiss this franchise goodbye.

@schemergluiperd  yeah but Vanquish has not been out for a year and a half. Selling just under 500k in a year and a half is pathetic

Yeah ok i did not notice Vanquish sold thát bad (worse than MadWorld) and I thought it was out longer. Sorry for that.But still I disagree that TC sold bad. The quality of the game is not great, it doesn't have a big name and it was the first serious try of an unknown game developer and it was still pretty profitable. If it really was a bomb they would have never made a sequal. 

I think there is more to this story that we know, Sega has always had some crazy love for Ninty since they left the console biz. IMHO i dont think it was that profitable, the advertisement budget alone. Unless the game was made for REAL cheap, im not seeing it. I think they are making a sequel because Sega just loves them some Ninty. I could be wrong

It should also be noted that Madworld and The Conduit hit the bargain bin rather quickly. They also had marketing campaigns and had a lot of hype going for them. That's why these games are considered failures and in the end Sega pulled back core support on Wii.

The combined sales of Vanquish are almost at a half million and its still going for $60 at most retailers.

Hence, Vanquish sold far more units at full price than Madworld or Conduit with far less marketing. In the long run Vanquish is a potential million seller.