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Alexei comments on I'm starting a game company and looking for a co-founder. - Less Wrong
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Google top 10 PC games. It's almost all lists like this. Now look at how many sequels there are.
Here is a list of best-selling PC games. Notice that almost half of the top 10 are sequels.
Note that I'm not saying making a sequel is very profitable. I'm saying if you have a very profitable game, then making a sequel of it is very profitable and safe.
Oh. OK, that makes sense.
Incidentally, video games usually manage to avoid the problems that movie sequels have; movie sequels are usually not as good as the original, but video game sequels usually manage to improve on their predecessors.