It all depends on where one lives. World does not begin and neither does it end with USA or UK. $200,000 would be considered a very large amount in many countries and would, indeed, make living for the developer rather easy and enjoyable. Average salary in my country is roughly $800, so an income of $200,000 would be greatly appreciated by any developer here. :)
Not if it cost you $250,000 to make the game or you have to make that to break even after paying all the staff costs.