Kadokawa aren't the first one's to find success using this kind of business model - look at Falcom, even their biggest games struggle to hit 200k worldwide, yet because they only have about 50 employees they can comfortably survive on that whilst making brilliant titles like Ys and Legend of Heroes.

Some people like to catastrophise about the fate of Japanese third party publishers, but I guarantee you even if Bamco, Tecmo-Koei, Sega etc. all die, Falcom will still keep chugging along like they always have :)

Indeed. As far as expectations are concerned, it's about all strategically planning and charting incoming revenue and how you want to allocate that within the company. Those games with smaller budgets and teams are what's making the iOS and handheld titles.

All the flops that had been said to the game needs to be taken back.

Ka-pi96 said: 50k doesn't sound succesfull. But hey, if they are happy with that then great

Falcom games sell poorly compared to larger devs and publishers, yet they've never made a game that hasn't made profit.  These larger devs just aren't satisfied with a simple few million dollar profit.  If it's not 20+ million, then they're not satisfied.  So the devs that are going bankrupt or have games that are selling poorly are severely mismanaging their money thinking they're going to get far more than they've paying, and then when all is said and done, they take a loss because of it.