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TheMisterManGuy said:
The_Liquid_Laser said:

It has more to do with the question, "Why do people play this game?"  People play ARMS mostly for competitive fighting.  That is also the same reason they play Smash Bros.  It's kind of redundant to make another ARMS, because fighting fans just want to play Smash Bros anyway.  Nintendo would be better off making a unique type of game than making another ARMS.  ARMS doesn't really bring in new people to buy a console.

But ARMS is still a completely different game from Smash. Them both being fighting games, doesn't change that. The fact that it sold 2 million copies worldwide is enough for them to make a sequel. Even creator, Kosuke Yabuki would like to make one.

Sonic and Mario are completely different games, but they are both 2D platformers.  They compete with each other, because people play them for the same reason.  

Smash Bros and ARMS have the same relationship.  They are completely different games, but they are both fighting games.  People play them for the same reason.  Since Smash Bros is waaaay more popular it is just better for Nintendo to make Smash Bros. 

Instead of making ARMS they should try developing a new IP.  That would be a wise use of resources.  I'm sure ARMS made a small profit, but that is not the purpose of first party software.  First party software is meant to move hardware.  That is why it is better to develop new IP than to make an ARMS 2.  Sure the next IP might not explode in sales, or maybe it will.  Who knows?  That gamble is better than making another ARMS.  Games like Smash Bros, need to keep having sequels because they are so popular.  But for a game like ARMS which is clearly outshined by Smash Bros, Nintendo is better off rolling the dice and trying something new instead.