I read it this way as well. Even if I didn't trust Larian as a company (I do), it's pretty clear that taking the time to make a high quality product worked out really well for them.
Considering there were rumored to be several games in the pipeline that all got scrapped at the beginning of last year, I think you're right. Dark Alliance didn't do great so I'm sure the execs freaked out.
Hopefully you're right about the message they received.
What are you talking about? Dungeons and Dragons: Dark Alliance was a whole ass game. It got kind of shitty reviews (currently sitting at 50% on Steam, 4/10 on IGN, 53% on metacritic). Published June 21, 2021.
I get that you believe that and it's a cute hill to die on, but that does not change the fact that a D&D video game did poorly and subsequently Hasbro shit canned a bunch of stuff. Larian got a pass because their shit was already in early access.
Lmao I honestly so hard at this, but honestly they were probably thinking "what's the lowest fucking bar we have here?" And instead this success told them that a little more investment might actually have better returns