Maybe not a flop, but certainly a disappointment. I would guess it barely broke even given the advertising I saw for it and how quickly it dropped in price. Honestly, I would have preferred a more blatant Smash Bros. clone as nearly every change they made detracted from it for me.

Pretty much this.  Game was ok.  Some very good ideas, but also some awkward ones.  Lack of 1v1 was disappointing particularly considering the game was more geared towards 1v1 than Smash was, and was built on a system with a competent online infrastructure.  I actually wouldn't have minded a sequel where the game forged it's own identity, but due to the game's massive unfloppiness Sony cut ties with Superbot so that's not likely to happen. 

I think they need to get Arc System Works to develop the sequel make it more combo oriented, but not BlazBlue combo oriented, so the game would still be appealing to casual fighters and pro fighters.  They should remake the game to have each character having life bars, but you still acquire AP so specials still kill in one hit, so there's more than one way to kill people.

Still a flop. If it takes this long to sell a million chances are the game is in the 5 dollar bargain bin at various retailers. Hardly a profitable venture if that's what it takes to sell it.

It surpassed Knack by 10k units! That's a smash hit if I ever saw one!

I know, right?  That'd be as silly as Mega Man or Sonic being in Smash Bros.  What were those crazy developers thinking?

Should have made it a 3D fighter like Powerstone, would have helped set it apart from Smash Bros. Maybe next time.

Don't forget about Snake, he's clearly a Nintendo icon. 

I was talking about iconic characters. So far dAnte and Big Daddy are the most iconic ones. You can't seriously expect me to belive that Sly is an iconic character.

Who's Sly?