Still Doomed?
Well, why shouldn't I pretend to know everything as well, so here goes: At this point, it's a toss-up between money and rep. The money bit is easy enough to figure out, as has already been done. If it doesn't make money, it gets cut. Nobody likes burning money. The rep bit is a bit more nebulous, but it IS important.
Sure, you COULD just cut a less-than-profitable product line like it was nothing and it would make sense, but how much of your company prestige that comes from that product line is important, sometimes quite a bit more important than taking it on the chin, money-wise, for a bit while you turn things around.
Nobody wants to be known as the next 3D Realms. Who?, you say. Exactly.
There's no doubt that ED is a big part of FD's rep. It's what made them what they are today and, for all of the hullabaloo about EDO, until then it was still viewed as THE way to experience VR to its fullest. Alyx may be taking over there, but that doesn't change how much of a rep FD built upon it, and deservedly so.
And now they're a publisher too. Just how interesting would a publisher be to a studio if said publisher were known as the ones that sunk and left to die one of the most talked about franchises ever? Investors?
Yes, viability matters, but that's far from all that a company survives on.
Now, as to the bottom line, how's this all going to shake out? I have no idea, and neither does anybody else who is not in the leadership of FD, but it's not always as simple as profit margins.