that 5mln$ was a development costs made by developer itself before they were picked up by sony and it was in early development stage. it's like saying that Killzone 2 had 40mln$ budget because Guerilla said they already flew past it big time more than 1.5year before launch of the game.
Conduit is hardly a flop - whole budget of the game was about 7mln as developer said and since they have money to make additional wii games we can say that they made quite a lot of $$$.
Forza 3 is not a flop either - so far it's selling 40% more copies than Forza 2 and considering it's not a high profile game like Gran Turismo(i doubt Turn 10 had even half of GT5 budget) and didn't have big advertisment campaign compared to other ps360 games.







