I believe that the mistake is to expect that you will be rewarded for your efforts just because you created something that resonates with you. It might happen, it might not. On average, I think that game developers make less money than food servers at McDonald's. And it was always like that, someone creating speculative work and trying to probe the market almost always makes less money than someone working on a guaranteed, time-honored market need.
The question is - was the trip worth it? Lots of times, it isn't. But let's take someone who spends a year of their life backpacking around Europe or wherever. Was it worth it? Moneywise, it was a huge loss of money, not "profitable". But it could have been personally profitable, it could have been the best thing this person has done in their life and one of those "deathbed joys".
If you approach hobbies and game development this way, I think it's much easier to accept a market failure. It must be worth it to YOU, otherwise you're in for very likely disappointment.