Ah, so companies should be satisfied with good enough?
You're missing the point.
The idea is to make a lot of money, so if it makes just a little money, well, that's not enough to be deemed "profitable".
In our humble eyes, it probably would be, but you know these suits, they want enough to be able to have their cake AND
eat it too.
Incidentally, 4% seems awfully low for an industry where so many sequels tend to get released. You know, Sims, Need for Speed, Neverwinter Nights, all the CSI games, Command and Conquer, all of the Blizzard and EASports sequels, GTA, Fallout, Tomb Raider, Far Cry, Call of Duty... etc... etc... etc...
If only 4% of games returned a significant profit, we wouldn't have nearly so many sequels.