Short answers, pulled from the story.
Today, a box-office bomb refers to a financial disaster where production costs exceed all returns. The meaning flipped from its original positive definition in the early days of cinema by the turn of the millennium.
The shift occurred as production budgets ballooned and marketing campaigns grew more expensive during the 1970s and into the 2000s. By the turn of the millennium, the meaning had completely reversed from describing a hit to describing a flop.
The 2005 film Sahara cost $281.2 million to produce and distribute yet earned only $119 million domestically. This example illustrates how high production costs create another layer of risk for studios.
Films like Waterworld eventually turned a profit despite early losses through international box office takings combined with video sales. Home media releases and television syndication deals offer steady income streams long after theatrical runs end.
Square Pictures never made another film afterward and eventually became part of Square Enix as Visual Works. The film failed to recover its $145 million budget due to mixed reviews and poor financial returns.