>>93573008A) It's cheap
B) It's scary, but not too scary, scary in a way that's palatable to children. This is actually a very untapped market. Children love horror stuff and there's not that much out there suitable for them.
C) All their favourite youtuber memelords played the game because the game is basically designed for youtube videos, each level being a set length of time below ten minutes and all the jump scares giving the funny facecam memers something to over react to.
D) It's cheap, little jimmy can easily convince mom to shell out 5 dollars for that month's new game, especially since the alternative is AAA games that cost 60+.
E) It has some retarded mythos/extended universe thing going on that lets kids and retards latch on and discuss them for months afterward and make movies about 'FNAF: EXPLAINED!' and keep people invested for the 2 months it takes for another sequel to come out with more extended lore bullshit, restarting the cycle and ensuring everyone was always at a fever pitch of interest.