Over 2 million shipped, no widespread discounts.  So yes.

Can you not read I said retail sales those sales you linked include digital sales you ironically said we're on a sales site check what numbers those games have here.

Not really. This is Nintendo we're denoting here, who are well capable of making multi-million selling franchises that have longstanding appeal - ARMS didn't sell as well as an AAA Nintendo game as it could have, i.e. Splatoon, and isn't exactly garnering a growing community like it should since the beginning (rather many players bought the game at launch, then quit or sold the game). In terms of sales, ARMS sold 2 million, not bad. However, the game has failed to maintain relevance since pretty much the end of the regular updates to the game. I don't know if VGChartz is entirely accurate, but ARMS hasn't made it in the top 75 global weeklies for software sales in a long time. In other words, it's practically got no sales legs anymore with its current price-point, which at least 1-2 Switch is doing despite being a worse bargain and no online mode. Nintendo should strive to create games that are the most profitable, which includes Mario Kart, Zelda, Smash Bros and Animal Crossing. All franchises that sell 5 million+, with Zelda just recently showing more prominence at being one of Nintendo's higher sellers. All these games sell on a consistent basis, and that's what Nintendo ideally needs in order to maximize revenue and make the most out of their efforts. Hence why Splatoon got a sequel and is leaping into one of Nintendo's best-selling franchises, especially in Japan. ARMS is failing to do that, and its online community is barren and stalled in terms of progress, arguably being about as alive as Splatoon 1 on Wii U. Moreover, the Mario Kart team were responsible for ARMS, no? It wouldn't make sense for them to prioritize a sequel to ARMS over the next Mario Kart or hell, DLC for MK8D, because those could make much more money than an ARMS sequel, or making a new IP that could hopefully gain more traction than ARMS did. ARMS may get a sequel eventually, but Nintendo would really need to revevaluate the game design so that people are encouraged to keep on playing, because I feel as though Nintendo games do a bad job in general at keeping their audience ceaselessly play their games besides Smash Bros. And at that have a small division work on it instead, rather than most of the Mario Kart team.

No need to get pissy when you're called out.

Can I see the source confirming Tekken 7 and Street Fighter V have sold less than 2 mill at retail? And please don't ignore that ARMS' 2 mill is only a few days old compared to e.g. SFV's 2.5 mill which is 7 months old.

I'll address you the same way you come across believe me I'll send you packing like every previous keyboard commando who has tried their luck trying to be funny, want a source go check the numbers on this very site you were touting they track retail numbers with even Tekken 7 being at 1.9m. 7 months old means what exactly why don't you read the posts you're responding to and the post that was quoted to see how irrelevant that is.

So no source. Great! Yeah, let's use a completely new number for ARMS and ignore that SFV's number is 7 months old and doesn't include sales from the Arcade Edition that launched in January.

And regarding the "trying to be funny". What?

Back when Nintendo Switch launched last year, a quirky fighting game from Kouske Yabuki and the Mario Kart team hit the console just in time for Summer. That game was ARMS, a third person arena fighter that was one of the first and best demonstrations of Joy-Con Motion Control. The game was well received, but lack of content, relative slow pace, and some questionable design choices limited it's shelf life compared to other Switch titles, and reduced its tourney scene to a small niche. Still, it's got a great and well executed concept that's ripe for a sequel to tweak and polish it to a higher level. I have some ideas as to what could be good for an ARMS 2, assuming Nintendo is making one (which I think they are).

More single player options - One of the biggest problems with the original ARMS was it's lack of single player modes. Outside of Arcade, there just wasn't much to do alone. So this is the first thing that needs to be fixed. Build on the single player, give us a story of some sort to follow, even if simple. Along with more to do.

I agree with more single player options and more modes in general

* Punch up the speed and combo game - Compared to other fighters, Combos in ARMS aside from one two punches and rush attacks aren't really there, the focus is more on spacing and mind games rather than flashy aggressive combos. Now you don't need to change the basic concept of the game, it's perfect as is. But it would be good to speed up matches, making them not only more fun to play, but also more exciting to watch. One new addition should be a sprinting mechanic, double tap the dash button and your character will run around the arena. I would also increase the travel speed of each punch and reduce the knock back, allowing for a deeper, and more varied combo system. To compensate, I would also make the arenas bigger and wider to still allow the player room to aim their punches and punish running. Which ties into my next point.

No, as a competitive player combos are not needed. In fact I can say for a fact it would make the competitive base leave more likely. All of these are bad ideas. Sprinting when we already have dash? what's the point. None. Combo system? we have multiple confirms. Think about it this way, a single homie rush that connects with a proper flurry arm is MORE THAN HALF OF YOUR HEALTH. Add in combo strings for what now? No point

* Special moves for each character and their ARMS - Each character in ARMS has different characteristics and attributes, but not much in the way of attack variation, making their play styles feel relatively samey compared to other fighters. For ARMS 2, let's mix it up by adding different moves for each character and their ARMS. You can punch as you normally would, but you can also do special attacks with different simple motion gestures of the Joy-Con or directional inputs on buttons. For example, on one character, you can slam either Joy-Con down to do a downwards slam punch, or another character can have a move where you quickly swipe a Joy-Con left, then right after punching for a double slap. It adds a layer of strategy and offensive tactics to the game, 

LOL NO. The entire point of arms is the arms and customization. Its simplicity and the mind game is what makes arms arms. Adding in special moves for each char will most definitely take something that's already fairly balanced (besides coyle, brass, cobra and triblast) and make it terrible unbalanced in one characters favour. Special moves are not needed.

* Scrap the ARMS stats and load out customization - Remember in the original ARMS where you can buy different ARMS and equip any one for each character, and duplicate ARMS actually made your existing ARMS stronger? Well that needs to be gone for the sequel. I wasn't really a fan of this mechanic, it makes high level play harder to learn and shifts the focus away from pure character mastery. Instead, every character should have a fixed load-out exclusive to them. You can still change ARM combos from a set of 3 each round like the first game, but you're stuck with the ARMS that character began with. This makes matches more consistent, and makes each character's play-style easier to learn as well, as all you now need to worry about is using the tools the character has, rather than finding the best load-out.

this literally goes against what arms is. And no it doesn't make high level play harder to learn. I've been playing from the start and you want to know what makes a high level player? Its not the loadout, don't get me wrong it matters, but its the movement. A characters movement and bait is everything in this game. We've tried defaults, guess what, the game wasn't built around it and its unbalanced for a lot of chars. A default ninja beat a default mummy? LOL NO. The ninja has to play 20x as hard. Loadouts allow you to circumvent the innate weakness of your character and build on it. Yes, its a lot of experimentation but if you want to play with the big boys, you improve your movement and find arms that work for you. This game is built around customization and you find how it works. I want to play a zoning ninjara? I'm sticking a dragon on. I want to box you out, I'm going double glove and again. The game is built around these options. Literally no.

* New generation of fighters - One idea I think would be cool, is focusing on a new generation of ARMS fighters. The starting roster will consist of entirely newcomers, with veterans from the original game like Spring Man being available as un-lockable characters and in post-launch content updates.

Disagree cause I only plan on playing ninjara in this series and don't want a character locked away because he was in a previous version. How about you build on top of who is already there?

That's about it. ARMS is a great game, but a sequel that refines the concept and fixes many of the problems can be even better.

The only games Nintendo EPD develops regularly that aren't 4m+ sellers are Pikmin and low budget games like Rhythm Heaven and WarioWare.  ARMS will probably end up selling 3m+ which is probably not enough to get an EPD created sequel but definitely enough to get a sequel developed by a 2nd party and overseen by Nintendo guys.