There's not a lot that kills my faith in a game like a studio having two active early access games with premises people are interested in, but that need work, and deciding that promoting a third new game is a better use of their time.
They gone viral and try to use their viral power to push as much to gain the capitals back. Yes it's not healthy and it could all go south really quickly if they don't manage it well. Viral go up and boom quickly but to sustain it is hard. You need actual good game loop and mechanics to keep player coming back for content drip.(assuming not live service game.)
The valheim devs did the opposite and I love them so much for it. The game blew up massively, but they didn't expand, didn't rush, and while the game has only received one major update and several smaller updates in years, the updates are incredible.
Palworld is a good start, but it needs several fixes to be truly amazing. Notably pals working in the base tend to get stuck, things glitch into the map frequently and make them difficult or impossible to catch or fight, interaction points for workbenches and chests can be glitchy, and the game NEEDS a work priority setting. My handiwork pals will abandon anything and everything to help me build something, but if I put something on a workbench it might sit there forever while they endlessly haul or harvest. For all the automation available, I feel like I have to micromanage to get anything done.
Still a solid 7/10 all things accounted for. Fix the bugs and it's a 9, easily.
If they actually built out the viral success, they could sell a lot more copies over time.
I'm not convinced pushing another game now is going to generate more revenue than it discourages, especially with the pretty visible dissatisfaction people have for Craftopia being replaced. It's definitely lowered my interest, though it's entirely possible I would have never bought it.