Why it maybe failed
My belief is that the film was toned down by the producers to make the movie more accessible to a broad audience, which actually hurt the film. If you look at the other action films of that time, they were sort of violent and over-the-top. Think 'Commando', 'Rambo', 'Terminator'.
I read many of the books in the Destroyer series, and they are much darker in tone. Remo would have offed a lot more people had his character been more like the original.
But, still a gret film, too bad they didn't continue the series. Thoughts?