Yeah, pretty meh results for both Xenoblade 3 and Engage.
With Fire Emblem, we know that the IP has greater potential (see 3 Houses) and so there’s plenty of reason to believe this is just a bit of a hiccup in the overall franchise sales picture.
As for Xenoblade, it’s strange to me to see 3 seemingly have worse legs than 2 despite the higher critical reception of the former. Maybe the more “controversial” aspects of 2 were actually a positive for sales? Regardless, my belief is that the combat system in these games is pretty scary looking for many folks, and that this series really needs to find a more newcomer-friendly system if it wants to grow.