> … or is it a long testing/tweaking process before the card gets released?
Yes, (for Magic at least) there is some playtesting and tweaking that occurs before release. Is it a long period? Not necessarily, but it is something.
> Is there a set formula?
Not really, but there is already a large library of examples.
If Card-A is safe and balanced, and Card-B is safe and balanced, then you can probably design a Card-C that splits the difference between them without causing any problems.
The harder part is when the game designers attempt to design entirely new mechanics which don’t have direct comparisons, in which case a bit more intuition and judgement needs to be used (backed up by the playtesting/tweaking).
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