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"Between the game servers and 3rd party dependencies, Splitgate 1 is costing us about $40-50k per month" "3rd party dependencies" is doing some legwork here, because I don't know if I could spend $40k/mo on game server cloud compute if I tried

Some hasty projections: with 100 machines (each hosting a single game server process, I'm assuming 6 players/game server) + 200 machines for services (authentication, matchmaking, etc) + 100 TB MySQL database, I'm getting $35k month

I'd really hope that your game server processes could host more than one game each (I chose c6g.xlarges for these!), and that's already capacity for 600 players: Splitgate 1 peaked at 450 players over the past 3 months - there's absolutely no need for this many boxes

(late disclaimer + bias: I had two friends laid off from 1047 yesterday and I'm a little miffed!)

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Totally fair to be miffed about! What I expect is sucking some money here is that they are probably working with a company that manages their infra for them, those can charge big amounts but can be worth it for larger titles. The Unity-owned Multiplay, who operate Apex Legends, would be an example.