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I believe the Pokemon company has beef with Nintendo. They didn't believe in the Nintendo Switch, they made the Mario Maker amiibos lackluster, and now I know for a fact this is true due to Spain being chosen over Italy.
Italy makes the most sense of the regions to choose, it has lots of culture to work with compared to Spain (Venice and its river streets, varied food like pizza, spaghetti, pasta, and of course Mario), and that's where one little fact made Pokemon get petty and choose spain instead. The mere fact that Pokemon would have to make a pokemon inspired by Mario made them choose spain instead due to their anger that Nintendo has a 33% stake in pokemon. This is why the next region will be lackluster in terms of inspiration, Spain just doesn't really compare to Italy.
