Seeing Arkane developers posting over Twitter how proud they are makes me feel bad for how much they're being shat on right now...It's why cancelling it or completely changing it wasn't really an option either, it would just create resentment from Arkane towards Xbox. It's one of those things, shit happens, no studio has a perfect track record and every studio has a stumble at some point. They can hopefully pick themselves up with support from Xbox and Bethesda and come out the gates swinging next time.
Find it funny how the narrative contradicts itself though, Xbox is apparently too forgiving on its studios and gives them too much time which results in #NoGames mocking but they're also evil for "forcing" Arkane to release Redfall early...Like...You can't have it both ways, Xbox already gave them a year delay and another delay to Holiday wouldn't change anything, a few points higher if that, it'd need a much longer delay and then we'd be back to the first complaining, what is Xbox doing to their studios! They're a mess! Can't get anything out!
Think the best option Imho was to release Redfall and move on, Arkane can maybe try to support it post-launch and try to salvage it but it's the core of the game itself that most reviewers are taking issue with and that would require a soft-reboot at this stage of development and I'm not really sure a delay by 1-2 extra years would go down much better and at that stage, it wouldn't even be the same game which was revealed to the general public, it'd be something entirely different, might as well just move onto a different IP then.
Staying the course is probably the most economically sound decision, it'd likely be a critical flop no matter where it released unless it completely changed what it was which at that point, it isn't Redfall anymore. The longer it is delayed, the less forgiving people will become. They couldn't properly execute their vision, it happens, they were so far in development that it made more sense to stay the course at this point rather than rip it all up and start over.
Hi-Fi Rush = Bethesda, Redfall = Xbox, Starfield (if it's good) = Bethesda, if it's bad = Xbox. Lol.