Changing scope and direction early mid development

Hey,
Currently we are a very small studio (3 people) working on a complex simulator game, we came to the conclusion that we got the scope creep and now will not be able to execute it on the quality level we striving for, we have paying early supporters.

How would you approach this situation? and if you did such maneuver what your advise would be

We decided to pivot in terms of starting new project in newer version to start fresh and avoid previous mistakes while moving only important stuff from previous version.

Thanks to Andi from the Epic for Indies discord giving me the insight of doing the change only in project it self and updating the community about the upcoming changes, why and how it gonna be.