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TheMisterManGuy said:
curl-6 said:

Which again would be a foolish decision. Any competent publisher weighs sales potential when greenlighting projects, and ARMS simply has not achieved the kind of success that justifies tying down one of Nintendo's lead studios for years on end, it's already been pretty much forgotten little over a year since its release.

When has Nintendo ever done what makes surface level sense? Sure compared to Mario Kart, ARMS wasn't an amazing seller, and any normal publisher would've gutted the team afterward. But this is Nintendo we're talking about, they don't just measure success by raw profits, they also measure it by player enjoyment. ARMS made a profit, and players enjoyed it. Nintendo still regularly promotes the game, which should tell you they consider it a success if a modest one, and if Yabuki wants to make a sequel, he'll make a sequel, and Nintendo will let him. 

Nintendo does make nonsensical choices sometimes and I'm not ruling out them doing so here, but from a logical point of view, imagine you're a first party publisher with a limited amount of manpower. Do you commit one of your flagship teams to a sequel to a game that sold around 3m lifetime and fizzled out within a year, or a much bigger project with vastly more potential?