You can’t really judge the sales of Labo based on it’s initial shipment.

Nobody had any idea what the initial interest would translate to sales. If they had low shipment and too much demand, it’s an other Wii Fit  situation and everybody lose in the initial process. If the situation is reversed, like it’s the case right now, we have too much stock on hands because demand is not at level the retailer expected.

In that case retailers will look at how’s product is moving, sure they order any other shipment for a while, but if the game keep selling on a weekly basis, they will reorder it at a level that match their sales previsions. If the game doesn’t sell at all, you can expect them to not order anymore.

Since Labo is marketed like a toy, I expect retailers to have a wait and see approach before putting them in the bargain bins.

And as an exemple, I know it’s extreme and can’t be used for comparison, but to emphasize that you need to analyze everything individually instead of looking at something the same way you’re looking at something else, it took 3 months for EB Games in Canada to sell through the initial shipment of GTA V, even with record preorders and sales.

I think you're taking this way too seriously. Labo is doing just fine

Brain Age
Launch date-May 18, 2005
Sales after 10 weeks-~300k
Sales after 1 year-over 2 million

Its not unheard of for a casual title to start out slow then explode later on.

We have to keep in mind that the target demographic for Brain Age was much larger than the one for Labo though.

Do you think that Labo holds the same replayability as Brain Age?

There is a difference between throwing down $50 for a game that you can play repeatedly and throwing down $70 for a tool that you build once, play the minigames a few times, and maybe tinker with the garage a bit.

I can easily see why Brain Age could be successful over a long period of time. I can't say the same for Labo. Maybe if the minigames had more depth to them and were replayable. But it's a build-it, play-it, store-it sort of thing for the most part. Nintendo enthusiasts will love it because it's totally charming in a way Nintendo can only be but for the non-enthusiasts who look for practicality in purchases it's a really tough sell.

Thats not the point it sold the same amount % of its first shipment which you are calling labo a flop on

Labo is not a flop. There are far too many Nintendo enthusiasts around the world which will guarantee that it will make Nintendo money.  However there is a large, wide, gaping area between "flop" and "doing good". I would suggest that currently, in Japan, Labo is somewhere in that large, wide gaping area in terms of performance.

Sure, im not saying it will follow a similar trajectory but its not unheard of.

Other games aimed at casuals or kids have done it as well.

The cardboard flopped

The controversial position is that I believe that Labo's performance, thus far, in Japan can be considered "not good". That is, I have the gall to state that it's doing something other than good. Whatever word you choose to describe (I'm keen on using middling myself, but sub-par, mediocre, and other similar words also work) in that wide gaping area of vernacular that differentiates a "flop" from "good" is where I think Labo is. It's not a flop and it is not good. Somewhere in between. Somehow holding this position seems controversial.