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I wouldn't call it a failure, but it hasn't quite reached expectations yet.

It stands at 340k with 9 weeks of data left for the year, 4 weeks of November, 5 weeks of December.
It just sold around 14k with the latest Global figures of Oct. 28th, which was actually slightly up from the week before. I think that's an encouraging sign.
Assuming it sells an average of 14k for these last 9 weeks, that'd put it at around 470k.
I think it can reach 600-650k, if it's close to 500k by the end of the year, maaaaybe 700k.
If it can get around that range, than I think Nintendo will be satisfied.