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A couple reason really:

1. They want to get some money back and don't care that it is bad (like EA is accused of doing)

2. They are to small to take the loss and are forced to release every game even if they know it will not make th money back

3. This goes along the lines of the saying, "to far into the forest to see the trees." they just don't realize it is a bad game until it starts to hit reviewers and gamers and it doesn't sell, then they blame piracy.

and just so you guys know, Starcraft: Ghost didn't get canceled, it just got put aside since they had so much trouble with it. there are rumors that once Blizzard merges with Activision that Infinity Ward will pick the game up and finish it.