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Faelco said: 

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. 

Nintendo's almost always upfront about the commercial reception of their products. If something under-performs, they always come out and say it. Like With Wii Music, and Wii U for example. Nintendo never banked on Labo selling Switches. Some people (myself included) may have thought that at first, but the more Nintendo's talked about it, it became clear it was never the plan.

Besides, it's not a failure, it sold over a million and Nintendo said that it did as well as they expected it to. So now their goal is to continue building on it to be a long-term product.