I think good decision because otherwise their "sequel" would only have the sales of the PS3 and be on significant decline compared to first.
I think it makes sense that sequel sold less because many people that bought Demon Souls to try it themselves found it an awful grind chore to play (like me). It also had poor story/gameplay. Sure if you grind through the start of the game, you can become very powerful and don't have to grind much anymore and then have more interesting gameplay and enemies and things are generally better... but how many people would get past that initial grind and blandness?
If you only played a little bit, the only interesting thing was how they handled deaths and social features, but rest of game was bland. The death and social features are being copied by new games like ZombiU. Heck, the whole MiiVerse idea for Wii U seems to be a console level expansion of the social features I first saw in Demon Souls.
