1) Make games with smaller budgets
------ Know your target audience;
realistically project how much you think your game will sell, and budget your game with the assumption that it will sell
no more than half of what you project.
------------ Also, assume that half of your budget will go toward marketing the game. No one's going to buy a game they don't know exists.
------------------ Focus your budget only on what your game
needs, not what you want it to have. I love Shenmue as much as the next person, but unless you can afford to bleed money into a project, focus less on superficial extras and only focus on the game at hand.
2) Fully develop a concept before entering development.
------ One of the biggest obstacles game development has today is not having the entire blueprint before beginning production. Imagine building a skyscraper with only 20% of the blueprint finished. That's asking for trouble down the road that will lead to delays, reworkings, and budget inflation.
3) Don't force your game out of the door the second it's done
------ Take time to market it, find a timeframe to release where it's going to stand out from the crowd. If you release a game sandwiched between bigger and more established games/franchises, you're asking to fail.
4) ???
------ ???
5) Profit
------ Make money and be happy.