They are right.
They are basically betting on themselves.
Game could miss their sales targets and they could end up wishing they made that up front money.
Or it could sell really good out the gate and they can look at gamepass later.
We don’t even know what or if microsoft offered them anything, maybe microsoft doesn’t feel the game is worth throwing a bag at them like they’ve done other games.
Other indie horror games have done really well on the service.
I think this game has a really high budget comparatively and they feel they have a built in fan base due to the popularity of dead space.
Time will tell if they made the right decision.
There, I fixed the bolded for you.