running the servers, doing bug fixing and possibly even a bit of development likely costs more money than they earn with it
This is information they publish in their investor briefings: broadly, the current pace of development is roughly break-even (marginally on the profitable side) with the current pace of new game purchases and cosmetic sales. That's better than anything they do that isn't a management sim, but substantially worse than their own-IP management sims.
Certainly trying to improve the rate of income is going to be a priority; equally, they do still have some room to cut back on development and bug fixing before needing to close the game if income falls further.
with very few occasional DLC's
The thing is, that wasn't the actual plan.
Horizons took two years (three if you count needing to fix Engineering
again in Beyond) when it was supposed to take one (or maybe 15 months or so)
Beyond was supposed to take a year but it's a good thing they did it for free because two of its headline features didn't make it into that year (one delayed another 18 months, the other finally showed up in Odyssey).
Odyssey took three years (four if you count the year of post-release fixing of the worst issues, really needed even longer than that, of course)
The
original plan had them both being one-year seasons and the much more regular income stream that would give. But they were unable to actually do the code and art that fast with the team size and budgets they had, and didn't at the time have any significant cash reserves to magic a larger budget out of.
So for an actual season a year, we'd have had to have had
much smaller seasons.
Horizons A: planetary landing and engineers
Horizons B: guardians and multicrew
Horizons C: Thargoids and basic AX content
Beyond A: engineering, mining and exploration reforms
somehow made gatable behind a DLC?
Beyond B: fleet carriers and the Kraits?
Odyssey A: station concourses and Apex? Hard to think what features they could have got working sufficiently early to stand alone.
Odyssey B: thin atmospheres and exobio
Odyssey C: surface settlements and CZs
...and somehow - to make it a net positive for income - had people regularly buy these at something still approaching the normal season prices?
Now, if their original plan hadn't been wildly overconfident about how fast they'd be able to develop expansions post-release (or arguably, develop the original game itself given how much wishlist stuff in the DDF never saw the light of day), sure, they'd have looked at the funding model differently and things would probably have worked out better. Or they might have decided to start with Planet Coaster instead, of course.
And now, there's no inccentive for them to fix the engineering grind, as they have decided to sell us the solution to that problem.
Well, not
yet. One of the pre-built ships shown so far has no engineered modules (two tech broker ones), the other has three but only one is useful. They'd need to go a fair way further down the slippery slope for buying pre-built ships (or maybe directly pre-built modules) to be a thing, which means it's not going to happen before they put in
yet another decrease in engineering difficulty later this year.
They'll get there eventually, I expect, but it'll take them a while to rollback engineering all the way to 2.1 levels at that point.