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de Blob is one of the defacto games for the wii. It is an amazing game, and it fits the casual style of gaming, it is rated well for a very good reason.
If an awesome game can only sell 700k units in four months on an install base of 45 million then yes i would consider that a failure.
Of course it will make money, but then again carnival games probably has an eigth of the cost and nearly double the sales.

I don't think Deadly Creature will even sell close to what de Blob sold.