“I thought I could ship at least 700 units to stay in business”
His sense of what games are "cool" wasn't in tune with the public. That's the cardinal sin. Pixel art dungeon crawlers aren't cool. It's as if he was a musician and decided to release a glam metal album today. Low budget, poor marketing, uncooperative bureaucracy - nah dude, none of that matters, you're just too in love with glam metal and people aren't buying glam metal.