No, they are performing much better compared to the previous entries (with the exclusion of Bayonetta 3 for which official data isn't known yet).stufff like Xenoblade Chronicles 3, Bayonetta 3, Metroid Dread, while performing better haven’t been much better than the games before.
It's just that franchises like Xenoblade, Bayonetta and Metroid have lower sales ceiling compared to other Nintendo's big guns.
Xenoblade 3 (NSW) after 1 quarter: 1.72M
Xenoblade 2 (NSW) after 1 quarter: 1.06M
Xenoblade games released on Nintendo consoles before the Switch (WII, WIIU, 3DS) never broke 1 million units.
Bayonetta 3 (NSW): ? (launched in the current quarter)
Bayonetta 2 (NSW) as December 2021: 1.04M
Bayonetta 2 (NSW) is the first time a Bayonetta game broke 1 million units on a Nintendo console (and likely the first time a Bayonetta game broke 1M on a single platform).
Metroid Dread (NSW) after 2 quarters: 2.90M
Metroid Prime 3 (WII) after 6 quarters: 1.38M
After just 2 quarters Metroid Dread is already the best selling Metroid game ever.
The last Metroid game to broke 1 million units before Dread was Metroid Prime 3 on Wii released in 2007.