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GoOnKid said:
curl-6 said:

They massively overestimated its sales potential.

Could be. Or that the model of opportunity costs only works on paper while the real world is different.

Well, at the time they were just coming off the breakout success of Splatoon which managed to launch a new A-tier franchise despite being on the dead Wii U. It stands to reason that gave them increased faith in pushing for new IPs, and games like 1-2 Switch and LABO also suggest they were expecting Wii-type experiences to be big on Switch, so they figured pairing a Splatoon-esque new IP with a Wii-style gameplay experience would be another breakout success.