IDK, I think that form of argument is a bit like reading tea leaves, up to interpretation and easy to align with preconceived notions.
I'm utilizing established psychological and business concepts and applying them to the gaming industry only to recognize that the outcome is a number I would have predicted. But, I never mind a good cup of tea either, I just use those leaves to guess the stock market (kidding, obviously). The stock market, ironically, seems to agree with me on this. CK3 released 9/2020 in the middle of COVID. Paradox stock went up $10 per share coming up on release date, held for a few months, and then broke falling to pre-CK3 levels fairly quickly. Compare to other gaming companies. Blizzard/Activision grew 20% in the same timeline with no coinciding game releases at all.
Obviously, you have to take any stock change with a grain of salt, as news and random events can affect stock prices. But product expectations (both internal and external) drive stock. Of course, one could just say "maybe CK3 underperformed against expectations, but it's not related" but if I have to pick between the model that predicted reality and a model that has to say "maybe", I pick the former.
What we need to make a strong argument is a comparison with similar games where one set follows a release model and the other follows a DLC model. Then look at initial sales vs lifetime sales, development budgets, how much discounts impact sales, etc.
Are you suggesting that games are somehow "different" from other market segments in this way, despite prima facie being affected by exactly that?
That said, a game like CK or EU targets a niche audience, so they want to get more value from the initial game development, so DLC makes sense
I don't disagree. Any niche product with a highish budget needs to consider creative monetization strategies. If you can't sell the product for enough to make a profit, then you can't really justify developing it. That doesn't mean the strategy paradox used for CK2 wasn't going to affect sales for CK3. I don't know what I'd do if I were a decisionmaker at Paradox because it's not an easy problem. I'm not saying they didn't do the best they could, only that I am fairly convinced CK2's model influences the sales of CK3.