Its true for every single industry.
How many million new books are published every year. How many spots on the bestseller list?
How many salesmen? How many make seven plus digits?
How many brokers? Who aren't broke?
How many games come out in a year? Can you count 100 top games that year? All time yes, but a single year.
Now look how many are released for pc, mobile, consols etc etc etc.
Yes, it is very true.
Multi billion industry, some top companies take big chunks of that, they also can afford to pay game developers some big chunks. Every now and again you get a small team that get a hit, but the average guy trying to make a game has to answer this....
How much do I need to make a living = X
How many games do I need to sell/people download/people play/ads veiwed/ etc to give me X = Y
Do your own math, numbers don't lie.
What do I consider profitable? For me the magic number is 1000.
I want 1000 people to give me 1 days worth of their annual salary.
That means I earn a little over 2 x the average annual salary. I have 1000 days of salary vs 365.
Example to illustrate:
So to make 1,000 a month I need to sell 1000 games a year at $12 game, or 2000 a $6, or 3000 a $4, etc