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I would fire someone if they started claiming that a genuinely massive portion of my company's core fanbase is tiny and doesn't matter. Especially if they did that publicly.
Because if any RPG Nintendo has published in the past 6 years has proven, that is not the case at all. Xenoblade 2 alone has sold over a million of those 1.5 million units in the West.
Also Nintendo is a console manufacturer, they can eat those costs and then some. Exclusives are a way to get more people into your console, and market your console. No matter how niche the market, no matter how unprofitable it is, it always benefits Nintendo. That is why they are one of the most able publishers when it comes to funding larger scale single player titles. They can take a risk on games like Bayonetta.