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Anything can look bad against too high of exceptions. I figured people were unrealistically expecting it to be the next Wii Fit or Brain Training type sensation and that's why it was seen as a failure despite it doing respectable numbers on it's own merits.

There is also that Labo reminds people Nintendo is not scared to think out the box and take creative risks which can scare industry because it isn't safe. Some people can act when Nintendo does something experimental like; if it doesn't end up as a Wii-like success it might as well of been a failure Nintendo never should have bothered with.