To be realistic, you have to include the costs of marketing and distribution. Considering that Jade Empire had television advertising, I'd guess that the total was between $15M and $20M. Edmonton has a much lower cost of living compared to Southern California, which helps with the overall development price, but it's still probably pretty high.
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And if your estimates are true, Jade Empire was not financially successful as these costs are larger than the $14M in sales that Draikin posted recently.