Well it stills impacts the game and the brand, The smash-like game that got out in Beta that was almost great has fallen down to me not remmebering the name of the game because it was not memorable enough and not fully polished. They will have a second chance then the game will "fully launch" but for a lot of people the Beta launh was the full laucnh

Yeah reptuational is part of the issue but there is also a big financial issue too. Delaying a game is financially difficult as it affects financial projects for each year with shareholders (who only care about share price growth). If you release a game in a poor state you get to hit some of the financial targets which benefits the publisher particularly, but for the developer it means longer terms sales are much lower as reviews and feedback come in that the game is crap. You then have to patch and repair the game.

Patching has allowed publishers and developers to get away with this releasing of games in bad states, but it doesn't change that fundamental issue which disproportionately affects the developer. Dev studios often only have 1 game being worked on at a time. An unready early release which is poorly recieved can be an existential crisis. For publishers, a poorly recieved game is a disappointment but generally have other many other games also on release so they can move on and not care as much.

No Man's Sky and Cyberpunk are high profile exceptions. The gaming world is littered with abandoned flops, often due to not being ready for release.

I'll never touch No Man's Sky because of the rugpull they did. It is sucky to me forever. If they made that game from the start - I would probably be playing it.

Also, games that are delayed too much sometimes end up being outdated and therefore relatively bad. Eg. Duke Nukem Forever.