They just gotta take a page from Oblivion and Skyrim and not focus on the character models but the world. Oblivion's and Fallout's faces were far worse and didn't deter people.
Oh yeah, but I still think that the faces will deter people.
And, well, NoA went out and said Xenoblade was too niche at one point. Well, uh, when your title with the best sales potential is something you call "niche," you better rethink it!
That niche comment is quite old. Unless you mean that random dude who got fired from Nintendo for doing an unauthorized interview. In which case, he isn't Nintendo and doesn't speak for them on such big picture stuff (him doing so is what got him fired :P). And I don't doubt there will be some people petty enough to get huffy over the faces. But there's worse faces in numerous other successful games. And, more importantly, its just the faces. Armor design and whatnot seems to go over perfectly well. And there are also people who are fine with the faces. I'm just saying, their approach just has to be correct. Focus on the scale, the vastness, that's what sells people. I mean, Destiny doesn't have the best character models (and definitely not the best character creator) but people are fine with that. Because they are serviceable for their purpose and the focus of the promotion is the spectacle, the scale, etc. They focus on the epicness that sells numerous franchises and they should do fine.