That's two million in two weeks. Even Ubisoft would have been pretty happy with that on some of their more recent underperformers. Doubly so if they had the comparably modest budget of KCD II... Embracer aren't minors either, after all.
As said, to me this only confirms what's been happening for the past+ decade. The model of ever infusing more simple action into RPGs and simplifying RPG elements down has been pushed to its limits -- the Bioware/Bethesda school, basically. By now these games are competing with all the action/adventure type of games that have been including RPG-lite elements since The Witcher 3 hit it big. That doesn't mean similar projects are destined to underperform. That only means you need an absolutely stellar game and/or a wholly unique take on the form to still stand out from the crowd. Bluntly put, Veilguard would have had it even harder had it neither had a Bioware nor a Dragon Age logo attached.
Meanwhile, studios such as FromSoft, Larian or Warhorse first thrived in their own niches. The games they started making were considered too risky for any of the industry players. "We're an industry about instant gratification", they would have told FromSoftware. "Well there's dungeons, kinda. But where are the dragons?" That's what they would have asked Warhorse. "Turn-based tactical combat? Table-top simulations? In the 2000s? Go make this more like Diablo", they'd actually told Larian since their early days. "All of you guys don't fit in, sorry."
Then all of these grew, both in studio size and target audiences. In parts because there's far more people playing video games now than ever, which also means a broader range in taste. And then they all could offer experiences that, on their levels of production, see no direct competition whatsoever. (Well, Soulslikes are a thing, mind you. But From are still considered the "Originals". And what better promotion is it to have an entire genre tag named after your own product? Jackpot, baby!)