Yes, but I've tried making products for non-competitive niches and they've all failed. And only when I made a product in a competitive niche did sales appear.
I think the more niche your product is, the more you need to be plugged in to the market, i.e. know people and understand their needs. You have to find a balance between niche and general.
I think this is a good idea. If there are a products there means money to be made and I think you found that out in a good way! Next step is to figure out what you can do different to start capturing market share, and turn that into captured revenue.