Should Valve start to give away money to every failed indie developer just because they didn't manage to gather their audience and sell well enough? Why people keep pretending that it's all Valve fault every time games sells like shit. Exclusivity is not an answer to bad sales, devs will get money yes, but it won't magically increase the sales. What will happen when Epic stops buying exclusives and just open the store to everyone, will indie devs blame them too if their game won't sell well in EGS walled garden either?
No, that's not what I'm saying. It's not on Valve. As far as I'm aware, they don't offer
any promotional/marketing contract deals beyond things like a publisher sale week.
Niche games like Stories Untold can be very well-made and well-received (as Stories Untold was), and not hit sales expectations. That doesn't make No Code a "failed indie developer", and it also doesn't mean that they "didn't manage to gather their audience." They may have done everything well, and simply found that that style of game doesn't lend itself well to profitability.
However, that doesn't mean that No Code needs to give up on making the type of games they want to, which is where Devolver comes in - they seek out deals and arrangements that lead to higher visibility and cash-up-front exclusivity that allows No Code to make Observation, still get published by Devolver, and have better exposure via the deals negotiated by Devolver. In this case, both Sony and Epic Game Store have arranged for the game to have exclusivity in exchange for marketing and publicity (like the State of Play video), as well as (likely) cash and insured game sales (in Epic's case).
There is more going on here than just exclusivity, and Devolver's statement of reaching new audiences makes sense.
None of this is to say that I agree with exclusivity deals, but I do agree with and fully understand the business decisions going on behind this sort of thing.