I feel like this is only true of internal or enterprise software where switching is expensive. For business to consumer, the impact of bugs can cause a company to go under or at least become a zombie. For any type of company, the thread of a competitor is high and can cause your company to stagnant and slowly go under or bleed and rapidly go under.

There is a real impact to a high amount of bugs, it just doesn't happen in one quarter. It happens over years and results in higher stress foe the developers. A stagnating company doesn't hire. It doesn't give raises and slashes benefits. A lot of terrible things happen before a company goes under. We can watch Twitter speed running this.