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I think this is a typical case of thinking that "special" equals "good", I think Reggie is in for a massive letdown as this will likely be an extremely nich title, along the lines of Wonderful 101, when all is said and done.
Even Reggie himself realizes that this is far too lofty a wish, the SNES was an actual force to be reckoned with on the market and the original Mario Kart sold nearly 9 million on the roughly 50 million installed base.

The sentence "but for now, it does have a strong niche following on paper" confuses the hell out of me, by the way, isn't that a proper oxymoron? And even if it isn't to some, isn't that incredibly vague as a statement by anyone? I don't understand what they were thinking there.