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Let me put it this way. Is Fire Emblem a failure because it doesn't sell as much as Zelda? Is Tomodachi Life a failure because it didn't sell as much as Animal Crossing? Are any of those 4 franchises I just named failures because none of them sell as much as Mario or Pokemon?
If ARMS was profitable for Nintendo and it's a concept they want to explore further and believe has enough potential to be its own, long-running franchise, then that's all it needs to be classified as a success. So, if in ARMS 2 is ever announced, there's your answer.