NOA was expecting Dragon Warrior to sell legitimately.
Black_Tiger is correct...when NOA realized that Dragon. Warrior was not selling, they swallowed their mistake and had a huge promotion.
My friend got into NES late, but I was actually jealous because some of the best NES games I ever played were with him, at his house, since I had sold all my NES gear to fund 16-bit gear.
It was obvious, even to high school kids, that NOA was "trying to salvage" the situation.
The first issue of Nintendo Power had mentioned the huge popularity of DW in Japan, so the seed had been planted for lots of nerds like me.
The average consumer, however, was not immediately (nor particularly) intrigued by DW (I myself had played many far more sophisticated games on Apple and IBM PC's....plus I played pen and paper D&D, so I was in nerd territory), but most of my friends were "mainstream" (relative to the time) enthusiasts, who enjoyed more action-oriented fare.