Spending that much money on any game is arrogant when a game needs to clear more then 3mil to make a profit you put too much money into it

Sad news. And a clear example of bad management.

And now they have another problem as KMM is full of ex-employees of Team Bondi, who will (probably) not be very pleased to see his old boss again.

There's a difference between L.A. Noire didn't make any money and Team Bondi didn't make any money out of L.A. Noire.

Take Two/Rockstar are probably making a profit on the game, the issue is due to overlong and costly development costs, team Bondi isn't ( because they only get a small share of the price of every copy sold).

I blame the studios itself as opposed to R*. Makes me think that the rumors about SONY dropping them after investing 20M and seeing no results were true.

At first I was shocked. Then I laughed. Right now SONY is probably thinking, "They are who we thought they were." I didn't think the game was that great, but I was optimistic about its future. It reminded of Assassin's Creed 1. Great concept, shoddy execution.

When a Publisher bails out/ comes to the rescue of a game (how ever you want to word it) like Sony did with Heavenly Sword, they have the upper hand in contract negotiations and the developer usually in return for financing/ debt alleviation basically becomes the same as an out of house developer that's given a fixed contract to make a game that some one else's property .
On one hand you may get completion and some short term employee tenure and keep from going under always a good thing plus if everything goes well future contracts , the down side is you have to give up most of the profits and maybe the IP itself and go from a studio that gets finance for its property's to becoming a out of house contractor, it also leaves you having to find funding for your next project with out being able to use the profits generated by a successful game.
All up the thing that seems to rear it's ugly head is ambition outweighs financial sense and in Brendans case history, delivery in a reasonable time frame and on budget.

They would have made money if they made 20 AAA Wii games with that money. :)

the rumours that LA Niore cost 150 million true. High budgets aren't uncommon to rockstar (GTA4 100 million) could explain why they might of made no money

27 dollar from each new game sale goes to publisher.

times 3.5 million = 100 million dollars roughly.

If the budget was higher, the game lost money. Hence Team Bondi getting nothing. If the budget was less then they would of made money. But the above numbers could be totally way off but my guess is that the game cost over 100 million to develop considering roughly 300 employees x 7 years earning an average of 80,000 is 158 million (i doubt all earned 80,000 and there was always 300 people but who knows).

I think this is a cautionary tale for other Western developers. Just because you can pump $100 million dollars into a game doesn't mean you should. If you are going to bother to do so, the game better by amazing or else that massive budget is pointless. Not every game has to be some massive project.

I think several of you are missing the point that some of us tried to make.,

Noone said LA Noire wasn't profitable.
But due to the way the game was developed by an out of house developer that needed rescuing, Team Bondi is most likely getting a very small share of the profits generated by the game ( the fact that they do not own the IP is another sign of this) and Take Two is getting the lion's share..