The only thing worse for a company than burning customers who might choose not buy their next product is if they fold before having the opportunity to release another product.

Early in my career I was a minor participant in discussions like this (albeit not in the video game space) and no one was in denial about the massive reputational cost of prematurely releasing buggy software, they were just balancing it against the increasing probability of bankruptcy.

Established companies with deep pockets and startups with shoestring development teams and patient investors might be able to weather a delay of six months or more, but most companies don't have that kind of runway and must constantly weigh the bottomless desire for more time to polish and the need for cashflow to make payroll.

(Thankfully the last couple companies I've worked for have had deep pockets and a strong desire to protect their reputations, but I appreciate that this is a privileged position.)