Namco Bandai must sell over 500,000 units of its PS3 titles before it begins to make a profit, according to president Takeo Takasu.
The price of graphics alone costs the second-largest Japanese publisher one billion yen (EUR 6.5 million), more than double that of titles for Nintendo's Wii, according to a report by Bloomberg.
"We have to sell at least 500,000 copies per title worldwide to make a profit on PlayStation 3 games," said Takasu.
Namco Bandai released Ridge Racer 7 and Mobile Suit Gundam for the PlayStation 3, both of which were the highest-selling games on the weekend of release, shifting around 22,000 units each.