If you look at the credits associated with MadWorld there are (approximately) 50 or 60 people who worked on the game, and (based on their job description) about half of these people would be shared resources or contractors for a short period of the project ... If I was to ball-park the development cost I would put it between $3 Million and $9 Million, and I expect it would be fairly close to the middle of that range; it is difficult to make a more accurate estimate without knowing more about the project.
Now, I'm not certain whether Sega has turned a profit off of MadWorld yet but I also don't think the 250,000+ sales that Sega made to retailers is really that bad considering its development costs ... It would (probably) be very similar (or better than) return on investment as Valkyria Chronicles, Yakuza 3, and could possibly be a similar return to Condemned 2: Bloodshot if the development costs were low enough. At the same time, it has (certainly) been a better investment for Sega than Stormrise, Golden Axe: Beast Rider, The Club, and (at least) 1/3 to 1/2 of all of Sega's HD console games.
To put it another way ...
MadWorld's sales are probably not that great, but they certainly fall within the range of a new IP that underperformed rather than the "Major Flop" that a lot of people portray it as. Most publishers have thrown far more money at projects on the HD consoles than Sega threw at MadWorld that sold far worse than MadWorld, and one of the main reasons why MadWorld is brought up is because it was a higher profile game on the web.








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