The low sales are caused by three things in my opinion:
Poor packaging/naming/advertising - This is a game that needs to be in mall demo booths like WiiFit was. Get people to actually play it and they'll love it. As it is there's no way to know what this game really is from the name or what's on the box.
Casual Appeal - Games that are casual in nature generally don't have large sales out of the gate, especially not new IPs. Still sales are soft because...
Intense competition - They launched the game between Mario Kart Wii and WiiFit along with Okami, PES and other good stuff. People only have so much money to spend and wouldn't want to risk it on an unknown like Boom Blox.
Too bad, it's an awesome game and I hope it continues to sell via word of mouth until it breaks 2 million.
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