Paradox CEO admits company made "wrong calls in several projects" in wake of Life By You's cancellation

Right,

It seems like they realized with Cities Skylines 2 that their QA and overall output quality had to be higher and Life By You's state must have been in such a position that they weren't confident they could turn it around.

Ultimately, they need to do some good-will gesture around CS2 in order to gain the trust of the sim audience again and I don't think it should be that difficult for them to course correct that game (though how they market it and get it in people's hands is another question...)

The game's youtube channel has a lot of gameplay videos. If you want my opinion it looked like an uglier, jankier, poor man's Sims 3 with none of the charm or humor from that series and I don't think it would ever had much of a real chance against Sims, not without a few more years in development at the very least because even the gameplay videos from a couple months ago still have that "alpha" look to it.