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Nuvendil said:

Funny how everyone writes off the posibility of an Arms sequel because it hasn't sold 3 to 5 million.  Xenoblade 1 and X never broke 1mil but 2 was made AND given the biggest marketing push of them all and that's a much more costly series than Arms.  Arms has already outsold the highest selling Pikmin entries and that series is still chugging along.  Nintendo has demonstrated time and time and time again that they are completely comfortable with giving ideas more than one shot if they show potential.  And they are also happy to keep mid tier franchises going.  I would be surprised if Arms doesn't get a follow up.

Basically this.

Every new IP doesn't have to a smash hit to be considered a success and worth making a sequel. Just because ARMS has not sold at the level that Splatoon 2 or even 1 doesn't mean it's not a success. 
By that logic, Metroid is not a success or worth more installments because it doesn't sell at the same level as Zelda; Kirby, Yoshi, and Donkey Kong are not successes or worth more installments because they don't sell at the same level as Mario; Pikmin is not a success or worth more installments because it doesn't sell at the same level as Animal Crossing; And Fire Emblem is not a success or worth more installments because it doesn't sell at the same level as Pokemon. 

All those franchises are successful and important to Nintendo in their own way. They all play their part in an ever-expanding catalogue of 1st Party IPs. And I expect ARMS to be no different.