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The OP seems to still not be able to discern the difference between the words casual, motion control, and blue ocean. None of those are the same thing.

Motion Controls are a style of gameplay input.
Blue Ocean refers to capturing an untapped market.
Casuals refers to people who casually play games here and there, usually playing for short amounts of time, and so tend to go for games that offer quick fun experiences over long experiences. Also casual gamers and casual games are not the same thing. Plenty of "core" gamers play casual games - like sports games, music games, puzzles games, party games, etc.

The Wii used motion controls to capture a blue ocean market which included casual gamers. See how those are three different things. It was very successful at this for a few years but then had tapped their Blue Ocean market and started not being able to pick up many more traditional gamers and so sales quickly dropped from the biggest we've seen on a console since ps2 to kinda puttering along the last couple years of its life. Despite this it built up such huge sales the first few years and it was a huge success overall.

Switch still has motion controls. Motion controls are far superior to standard controls for some types of games, and for some types of games they're just another way to play, and some types of games they are inferior or not needed at all, while some types of games are built entirely around motion controls. Nothing about motion controls means that game is a casual game or that it will appeal to an untapped market. It did on Wii because it was new and exciting and fun. Now motion controls are just a standard (at least for Nintendo) and just one more great feature of the system. The Switch will use motion controls for games when it makes sense, like Arms.

Arms and 1-2 Switch not selling millions of copies is not some rejection of motion controls. First off they have both already sold over a million copies which are good numbers for them. 1-2 Switch is a very shallow game and I'd be very surprised if anyone thought that would be a huge seller, I would say it has definitely already outperformed what I expected from it lifetime. Arms is a new IP and a 3D Fighter - not exactly a huge sales genre. And it is looking like it will definitely pass 2 million sales lifetime, which is fantastic for a new IP in that genre.

Motion controls are no longer an exciting new thing so it isn't gonna bring in Blue Ocean customers. The hybrid gaming aspect of Switch will probably bring in some but nothing compared to the Wii, because handhelds have always existed, non-gamers generally aren't gonna get all excited just because you can finally have a console experience and console quality games on a handheld. That's a fantasy of core gamers, hence the Switch is killing it with core gamers.