Consider that its sold 1/10th of Pokemon, NSMB, Animal Crossing (etc..) in Japan - yet would have cost a lot more to develop, and taken years longer - its a (relative) failure.
Those titles have sold more units in JAPAN that TP has worldwide - across two platforms. Nintendogs is up to, what - 12m WW?
Hopefully Phantom Hourglass will break the trend, and do 1m+ in Japan - and 10m+ worldwide (lifetime).
Gesta Non Verba
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