Sure, if the investment is high and the room for profit is small, then that is a big risk. This could mean that a serie doesnt get more sequels. It is in many cases very hard to know in advance exactly how a game will be received though, so many times it is almost a pure gamble. But being profitable is better than not being profitable
If the profit is very small, at least that means getting their money back that can be used to investing in the next project. So there is still some positive things to it. That is what i mostly was thinking about.