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where the market is not saturated with many titles such as this giving it less competition which will earn it more sales.


On the one hand this could be true. RE4 was clearly helped by missing competition. On the other hand releasing a game for a console where other genres seem to sell well could be a bad strategy as well. Because of that developers copy successful games instead of doing the opposite to have no competition. So it could go both ways. In any case: huge is a bit hyperbole .

I'm not comparing it to MGS. I'm simply saying that niche doesn't mean less sales


Depends if you have a big niche or a small niche. Generally niche implies a small target group and low but predictable sales. I think a game where your only protection is a camera has a small target group and mentioning it in the same sentence as MGS4 is insulting .