This game's single button tells me it never left its testing phase and the crunch time for the studio was doubtlessly only for fixing the largest bugs. I had always assumed it would be hard to fuck up a gimmicky platformer, but Goddamn was I proven wrong. What gets me is that Mario Odyssey already does this exact set up via the capture gimmick, the only difference is balan uses costumes as its theme instead of ghostly possession--its like having a map to a gold mine drawn by the frontiersman who discovered it and still getting lost along the way.
As for SE thinking this game would bomb, I assume they were impressed enough with the pitch to give it the requested budget--I say that based on how much went into the music with them getting that London choir who cannot have been cheap. It'll take a while for the whole picture to be revealed through the lawsuit, but I can only imagine the producers realized what a mistake they had made when naka's awful management practices started to became a serious problem. There's no way this is anyone's fault but his own, not with his reputation of being a massive douche with nothing to back up his ego.