How about neither marketing or whatever for PSASBR?  How abou it is also a niche title to, that isn't going to win over the Smash Bros. crew to buy a PS3 just for it, irregardless of how good it is?  How about also it isn't a type of title that would appeal to the Playstation demographic either?

Titles can be niche and not do huge, no matter how well executed?

And how about Sony not follow Smash Bros and do brawling differently in a way that is really modern in gameplay?

PSASBR has over half a million (Digital Sales Not Included) and it's still selling. It's not a flop.

Floo is relative to expectations.  If it is made out to be a Smash Bros. killer, and become the top selling high def console seller this generation, then you have a major flop.  If seen as a sleeper title that is profitable, and opens up room for a sequel, then All-Stars still could fit that.

Well that wasn't what is was made to be, it was geared to be more towards the second one.

I REALLY REALLY LOVE PS All Stars. I've played so many hours of it both alone, online and local. Seriously over 30 on Vita at least and 50 on PS3 easily. Still playing it and cant wait to play the new DLC characters.

But here is the thing.

It doesn't feel like what the name suggests: PlayStation All Stars.

Like this is supposed to be a collection of the star characters who have made contributions and impact to the life of PlayStation throughout the years. But it's missing so many frickin characters who did so.

Why the fuck is Evil cole in there? Why is Dante there? Raiden for me personally is one of my fav characters in gaming but he isn't All Stars worthy. Same goes to Heihachi.

Characters who should be there: Crash Bandicoot, Solid Snake, Wander, Cloud Strife, Ezio, Lara Croft, Spyro, Sephiroth, Sora, A Chimera or Nathan Hale. These are the type of characters who would truly honor the name of a PlayStation All Star. An All Star character is a character that when asked to gamers who is a memorable character that has embraced PlayStation, they would mention that character multiple times.

A character appearing in 1 fuckin game shouldn't be considered an All Star. Nariko? I love her too but she ain't no All Star.

This game should've had 30 characters on disc from the get go.

Most games from a major publisher would be considered a flop at 500K, especially as their main offering for the holiday season.  Sony's actions, price cut and cutting ties with Super Bot, indicate that Sony is disappointed in the product.  It's pretty clear that it is a flop and will remain so unless it somehow catches on later in its life which, while unlikely, is not impossible. 

They're still supporting it w/ DLC, and it is far passed 500k (It's been a top seller on PSN for quite a few weeks now) and continues to sell.

It continues to sell... very slowly... In 2013 so far, it's sold 43K.  For the sake of comparison here are how other titles have been doing this year.

WWE 13 (released in October)(PS3)- 60 K

Kid Icarus Uprising (released in March)- 17K

Paper Mario Sticker Star (released November) 153K

Kingdom Hearts 3D (released July)- 18K

Smash Bros Brawl (released 2008)- 53K

Mario Party 9 (released in March)- 57K

Arkham City PS3(released 2011)- 54K

It's still selling, but you can say that about any game that sells more than 1 copy a week.  It's not selling at a very fast rate, certainly not fast enough to turn it into a hit.  If it continues at this rate it will hit 1 million by around next new years, and there is no reason to expect that the sales will continue at this level.   No DLC beyond Kat and Emmett have been announced.  Sony cut their ties with the developer who was supposed to do the DLC and it's unclear how involved Santa Monica will be.  The game's price dropped by 30%.

Denying that the game was a flop at this point is... well... denial.

No one even knew about this game, I'm trying to say, this was more of a test for Sony, and it's doing very well in thay position (not to mention the fact you put it up against huge games)

Everyone knew about PSABR, it's one of the few times Sony actually marketed something.