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  1. Yes, developers generally know when they aren't making a good game but as long as the game should make money or at least recoup a good amount of the money spent on it it will proably get released.
  2. Even bad games generally get focused tested and hopefully the developers will adress all the issues or as many as possible.
  3. A month wouldn't be enough time to raise a game from a 50% to an 80%. It probably wouldn't even be enough time to raise it to even a %60.