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I think something that Pokemon had over Digimon was stability. Most Pokemon evolutionary lines are straight forward, three stage lines, sometimes branch evos, but you can never get lost.
I understand this is part of the Digimon 'concept' considering they are made of data, thus their potential is limitless, but Digimon evolutionary lines are convoluted as fuck. I mean, depending on certain circumstances you could get /anything/.
Since kids are the main demographic here, they're mostly going to cling toward something that is simple and easy to follow and understand.
Also there are lots of weird and ugly Digimon out there, just as many as the cool looking ones, where most Pokemon designs are simple, easy on the eyes and appealing. Even the most jumbled Pokemon designs can't hold a candle to some of Digimon's simplest designs.
I think Digimon might have done better if it had been marketed toward an older audience from the beginning... and didn't have shitty games.
