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ARMS isn't a failure. It was well received among critics and fans and it sold well.

Wyrdness said:
The only fighting games that have sold more than it this gen are Tekken and Smash Ultimate so it's far from a failure.

Besides Tekken and Smash, there's actually a bunch of fighting games that have sold more as well. That still doesn't make ARMS a failure though.

Best selling fighting games in the 8th generation (excluding WWE 2K and EA Sports UFC):
1. Super Smash Bros. Ultimate: 15.71 million (link)
2. Mortal Kombat X: 10.5 million (link)
3. Tekken 7: 5 million (link)
4. Dragon Ball: Xenoverse: 5 million (link)
5. Dragon Ball: Xenoverse 2: 5 million (link)
6. Street Fighter V (excluding Arcade Edition): 4.1 million (link)
7. Dragon Ball: FighterZ: 4 million (link)
8. Naruto Shippuden: Ultimate Ninja Storm 4: 3 million (link)
9. ARMS: 2.1 million
10. Mortal Kombat 11: 1.8 million digital sales in 1 week (link)

Including physical sales, MK11 is of course over 2.1 mill as well as it's currently 2019's 2nd best selling game in the US (link).
Injustice 2 shipped 1.5 mill in 3 months (link) so that may be over 2.1 mill as well.

Last edited by Replicant - on 17 February 2020