Data gathered by analyst firm Electronic Entertainment Design and Research (EEDAR) suggests only 20 percent of games ever turn a significant profit:
The information, which is based on data gathered by the Electronic Entertainment Design and Research analyst firm (EEDAR, originally showed that only 4 percent of games ever make a profit but EEDAR has now issued a correction to those figures.
According to the correction as posted on Kotaku the research actually shows that a full 20 percent of released games are able to turn a significant profit. The confusion stems from the fact that only 4 percent of all games that enter into production ever make a profit; but most games that begin production are never released.
According to EEDAR, a major problem for game developers and publishers is that often more than 60 percent of a games allotted budget will be spent on redesigning fundamental aspects of a game.