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pokoko said:
You're trying to combine two separate arguments into one.

Is the ARMS software a success in terms of sales? Almost certainly.

Did ARMS perform well enough in the eyes of Nintendo for it to become a full-fledged franchise going forward? That remains to be seen.

Nintendo is obviously trying to diversify their lineup, especially with online multiplayer in mind. If ARMS gets another installment with full development and marketing support behind it, then that would most likely mean Nintendo is optimistic about its future. If it goes away quietly into the night ...

I think it did. Animal Crossing sold roughly the same as ARMS in its first game, but it eventually blossomed into one of Nintendo's biggest IPs with later games.