It happens in service industries all the time. People pay for a product up front and then wait for it to be delivered.
For instance, I've been doing web design professionally for a few years now and it's rampant. One of my clients ended up hiring me to fix his website after he paid another company $3000 for a "cutting edge custom Wordpress theme." What they delivered was a site using an old unregistered copy of a premium theme with the registry guts ripped out and a bunch of modifications done to make it look like the client wanted. But it was using a bunch of deprecated functions with the errors hidden even when the company developed it (old theme version), so the next big Wordpress update broke their whole site. To add insult to injury, $1000 of the $3000 was for SEO. Their idea of SEO was to pack the site full of meta keywords which didn't even exist in any of the content (and if you know anything about SEO, you know that practice died years ago and is ignored and can even be penalized as keyword stuffing by search engines now). The best part? They forgot to turn the site's noindex off, so Google wasn't indexing them at all anyway.
Another example: When I and my wife were married, we hired a professional wedding venue. They had all these beautiful photos and videos of weddings done there and it looked beautiful. But their service was atrocious - they completely botched our music and we never had any music playing even for the walk down the aisle, they pushed our wedding party to the front without the rehearsed walk so the only one walking down the aisle was my wife, and the guy (who wore a suit when we met, but showed up to the wedding in a dirty t-shirt and jeans) photo bombed every single one of our photos. Including our walk out of the venue with guests throwing rice - he was in the back holding two big black trash bags pushing through the door behind us. And they rushed us up the entire time and pushed us out the door early because they had double booked.
Now in both cases the client could probably sue and be awarded most if not all of the fee back, but most people don't do that. We found out later that the wedding venue had been specifically deleting their online business listings because of repeated poor reviews. If a bunch of people got together and sued the game dev studio in a class action they could probably win, but it wouldn't ever happen because #1 nobody wants to organize that over a few bucks they paid for a game and #2 they probably wouldn't even get enough to cover lawyer expenses and the dev studio would just declare bankruptcy (unless they didn't properly do the LLC, in which case they might get some of their personal assets - but we're talking about the average indie game dev who has little to no assets).