Another tidbit about game design: it's a speculative business. Aka, you pay first in order to make whatever game you're making, then you make some income.
So if you think they made a million dollars, for instance, on their first game, that's just what they made before factoring all the development time that originally went into it. How long until they broke even? How much did they then spent on free content patches and support in order to keep sales going for a longer period than their original flurry on initial release?
Once you then factor all that in... how much money is left to make the next project? Especially if you had business loans or something to make the first one (which I don't know if they did).
Arcen has always had the good fortune that AI War cost me almost nothing but a massive amount of my own time in order to initially create, and so the profits from that have enabled further projects like Tidalis and AVWW. However, a lot got reinvested back into AI War as well, post-release, but the expansions and so forth balanced that out and made it so that it was still very much a net gain for us the whole way through with AI War.
But you can't just look at the surface finances of a game company and know these things.