Klei's business model

[Petzi]

This isn't strictly related to Hot Lava, but I'm curious about Klei's habit of releasing a game as early as possible while it's still in development. The idea I have of it is that it worked for Don't Starve, so Klei started using it for all their newer games.

 

I assume that it wouldn't work with a game that's dependent on a fixed story, like an RPG, because the players wouldn't get the intended experience. I also think it must be really good for balancing and deciding the game's direction, because you get huge amounts of playtesting while slowly building up a player-base. But I'm wondering what factors I haven't considered.

 

So my question is, what are the advantages and disadvantages of this model?

How does it affect revenue, as opposed to other models?

Will Klei keep using it for the foreseeable future, or are there some games where it couldn't be applied?