There are a culmination of reasons why this didn't do well commercially.
- Sandwiched among high profile IP's, specifically Spider-Man 2, Super Mario Bros. Wonder, Assassin's Creed Mirage and Forza, to hit deadlines probably set by EPIC to release during the halloween timeframe thinking it would be a great PR move to maximize revenue. There's a reason why Alone in the Dark was postponed. They're not stupid.
- No physical console release or a pc steam release, means a death sentence, to a niche IP like this one.
- Very minimal PR. Understandable that EPIC's footing the bill. They only care about recouping the cost of devices, and the console initial sales will do that for them. They don't give a crap about later sales as it's already EGS exclusive on pc.
- The game is visually phenomenal, but their previous outing, Control, is not that far off. They could have tried and squeezed in a PS4/Xbox One port if they tried, but again that's more work and deadlines strike again. Also, Control was an absolute shitshow on lastgen consoles, at launch. Playable, post patches later. Outsourcing is a gamble until you know the team well enough.
- Relying on 3rd party publishers like EPIC, will always bring in bad PR and loss of freedom. Remedy are too big of an "indie", in 2023, to not self-publish their games. Believe in your work more than external investors, for once, maybe?
Those are some things on the top of my head when thinking why this game underperformed.