Just some guesstimates ...

DP has a contract for a fix price for the games. They put that money on the side to pay for games when shipped.
It took extra time to redesign and tool, so let's estimate 2 ARA-folks working a year = 300K. Here's your 1K extra a game.
First 50 games get shipped out, DP pays 325k (6.5K a unit) ... but not the extra 50K asked for by ARA.
DP says this wasn't accounted for or agreed upon.
ARA says we told you it be more work (did they quote and was it signed off ?).
Shit hits the fan ...

ARA has the rest of the machines in stock and ready for shipping, but is not willing. "Let's take DP hostage and get them in trouble. We'll force them to pay. We have the power!" ARA can not sell the machines themselves, because this would be a breach of contract probably.

DP sees that ARA has the machines ready for shipping. Has not provisioned the extra 300K, so they can pay the machines, but not the premium demanded by ARA. DP does not allow themself to be strong-armed into paying more. So they do some math and think ... "It will cost ARA 1.625K (250 * 6.5K) to let them stand in their facility. Let's see who can hold this position the longest. ARA has much more to loose. We have the power!"

So we are at a stand-off to see which club has the biggest balls and can hang in the longest (while both are searching for alternative routes).

DP has not communicated correctly to their customer-base --> Stupid move.
Customer-base has reached out to ARA. This gave ARA new means to put the pressure on and force DP to pay the premium. DP is also getting a bad rep because of these direct contacts with ARA.

DP still doesn't want to pay the premium, because if they do it now ... their business-plan needs to be rewritten AND what premium will ARA bring out for machine n° 2. Trust is lost. Can they still work together in the future ?

DP has not been asking money all around --> Good sign.

As always in a relation-ship, there are 2 sides.
Nobody (unless DP & ARA) knows the whole truth, and both those parties are coloring the facts to their truth.

The cat is out of the bag now, harm is done. So, in my view, DP should start crisis-communication on a day-to-day basis with verifiable information to their customer-base. That is the only way that customers will have your back (if you're in the right offcourse) and help in pushing through. Day-to-day ? That's right! Day-to-day!

PS: I ordered TBL with chrome trim & rug, but backed out when 4K downpayment was asked. If I don't get something in return of equal value, I don't let go of my money. I never do downpayments (not on a car, not on a house, ... never).