I would imagine there are a couple of answers to you questions but I'll do my best to give you my interpretation...
Park Place Productions did NOT create products for a niche market. They created sports games...most recognizable would be Madden Football. The most highest selling games are sports related, especially football. By a show of hands, how many out there like the sport of football??? I, myself, LOVE football...so marketing a product like that to someone who likes football was not necessarily a hard thing to do. Not to mention that it incorporated cutting edge technology for that time. In short, the market was already established and most gamers already play sports games.
Now, breaking into the Christian market is not as easy as one might think. If you think about any Christian media that has been marketed you typically think of low budget projects. The movie Fireproof comes to mind. This was a low budget film ($500,000) and most of the cast and crew volunteered their time or worked for very low pay. The lead actor, Kirk Cameron, didn't even get paid. It was not advertised on TV or radio...it was marketed directly to churches and pastors (grass roots effort). While it was a surprise hit, most critics gave it bad ratings. My point is, that the Christian marketplace is very difficult to break into....it's not that Troy has lost his mojo, it's that this market has proven to be very difficult to tap.
Yes, they are in the red. But in the process they have acquired 2 companies, one of which is a social media company. They have grown their product line and are doubling it this year alone. Developing one video game is expensive but they are developing numerous games at once...and that costs money.
I am not, by any means, making excuses. This is my interpretation of why we are where we are. Once they are able to establish a loyal customer base sales will become easier and marketing will not be such a chore.