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outlawauron said:

 

TheMisterManGuy said:

 

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. 

Where did you get this impression. Please cite sources.

If something under-performs badly, they just stop doing it. Like every other rational company in the world.

https://www.mcvuk.com/consoles/miyamoto-ponders-return-to-wii-music

https://www.kotaku.com.au/2009/02/iwata_wii_music_didnt_reach_potential-2/

"I think it sold lower than our expectations but on the other hand it was a really unique game." - Shigeru Miyamoto

They never said it was an outright failure, but this is a case where a big casual title fails to meet Nintendo's expectations with the company admitting as such. 

Besides, as a publicly traded entity, Nintendo is obligated to be honest about the commercial performance and sales expectations of big releases. They have to make it clear to investors what they expect from a title, and how well its met those expectations.