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Yes. Intentionally keep their workforce small, due to being Nintendo handheld exclusive, could afford to ignore the wider industry trends and still sell well and like most other 2D studios had difficulties transitioning to 3D. In fact, it's due to having Pokémon, they were able to actually continue with adapting to 3D, unlike others who either ignored the jump and moved to mobile gaming or folded completely trying to make the jump and failing.
