Wrong. Earthbound was always regarded as a cult hit that was unfairly treated by Nintendo. Also helps the character was in Smash since the start and the NES Earthbound was one of the earliest unreleased games to leak online.People knew about the games for sure, it's just we didn't see the Quirky JRPG earthbound inspired madness until indie games rose to power.
That interview happened around gamergate/OP Torrental Downpour i think it was called?(The backlash to FE Fates), and it was more or less him defending the loli shit in criminal girls being censored, while saying. he wanted to localize idolmaster.
Gaijinworks made more games after that, but not a single one of em sold well at all, he also stiffed someone out of a giveaway on twitter if you want to look that drama up.