Well okay, it wasn't an immediate juggernaut. But Nintendo said it sold well for its first year, and they'll expand on and grow it in the future. Labo's meant to be a long term product.
Yeah, yeah, just like "Labo will do great" was said before launch, and then "It's just a soft launch, it will be a monster for Christmas!" was said after launch. Labo will supposedly always "do well later".
Except that it most likely won't. Nintendo will obviously never admit that the stuff they counted on was a failure, but it was. Maybe they'll modify it and try again later, who knows.