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While I can see the price argument making sense in Japan, globally I think it's more that the game itself just wasn't up to expectations, especially on PC where it runs so poorly that a lot of people were locked out of playing it due to not having the gear to brute force it.

In retrospect, they probably would have been better off making a smaller scale game more like Rise/World that could run more comfortably on lower spec PCs while also looking better on PS5/Xbox and being able to be brought across to Switch 2.