Actually, that article is leaving out important details.
Here's how it really went.
The gov't paid pandemic to develop the engine used to power FSW. THQ, the publisher of the game, now pays the gov't millions in royalty fees for game sales due to the fact that the game uses technologies built (monetarily) by the government. So the government did invest taxpayers money to build the engine, but it's also making money back on royalties.
You can see that as better or worse.