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Since this comes directly from Nintendo, it matters that they openly admit Other M didn't meet expectations due to the mixed public reception.

It means they'll probably go back to the drawing board for the next Metroid game and that the odds of an Other M 2 in another 2 years is a lot less likely.

What it should mean to fans of the franchise is that they'll simply do better for the next game which will hopefully appeal more to old fans of the franchise and maybe even expand the audience.

Other M had plenty of issues, whether the minority who were willing to ignore them sees it that way or not. The first step in fixing those issues is acknowledging they are there in the first place. And if you don't and see the sales of Other M as also "great" or even "acceptable," the reality is the game underperformed. Nintendo expected better sales. And the sales reflect that quite a few Nintendo fans expected a better game experience.