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They are unless you're hardcore though.
I don't even really think that's true any more. Demon's Souls was regarded as a success for being hardcore, and that label has largely carried through to Dark Souls and Bloodborne. But last I checked DS3 sold ~3 million units, and the Dark Souls series was at something like 8.5 million. That's not just for the niche and hardcore.
In fact I think that they've benefited from the same kind of perception that Gran Turismo did in it's early days. Gran Turismo was generally perceived as a surprisingly accurate driving simulator, which would normally be a niche market, but it sold by the truckload because it was both accurate (for the time) and accessable and fun. I think Dark Souls/Bloodborne/Nioh have benefited from the same perception. They're not easy games, but they're held up as a paragon of punishing design (which is only sorta true). They're very well made, reasonably easy to get into and pretty fun in a way that few other games provide. You feel like you fought for every inch that you gain, and that's a great feeling of accomplishment.
I don't think that's niche, I think that's something that only a few people appreciated before DS became popular but now that it's more widespread people are finding that it's actually more fun than they thought. Especially now that "gamer" isn't a niche activity itself.
I would say that to my mind something like Bloodborne is about as niche as an online focused fantasy racing league car game.