Namco Bandai president Takeo Takasu has said the company must achieve sales of 500,000 units of every PS3 game to make a profit.
According to Takasu, a normal PS3 game will cost $8.6 million to develop, and as such high sales are required to recoup costs.
"We have to sell at least 500,000 copies per title worldwide to make a profit on PlayStation 3 games,'' said Takasu.
So far the Japanese firm has released two games for the PS3, Ridge Racer 7 and Gundam, both of which are available in Japan and North America, and according to Takasu are "selling well..
Releasing at the launch of a system is risky business though. With such a small install base, a large percentage of new console owners will need to buy your game for it to be a success.