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I'm not happy with Nintendo using overly broad and abusive patents to block Pocketpair. It's an unhealthy practice and I don't support it.
That being said, I think Nintendo is going all out because Palworld is copying the design and graphic identity of Pokémon. Its success is mainly due to "Pokemon with guns."
Temtem, which is clearly a Pokémon-like creature, has never had any problems. It's even available on Nintendo platforms. Why? Because it has its own artistic direction, and the monsters are their own original creations and not fakes.
It's not just a success story either; Pokémon has never attacked Yokai Watch, which for a time surpassed/matched Pokémon in terms of sales. Yokai Watch is also licensed for Nintendo consoles. Whereas Palworld isn't likely to be available on a Nintendo console.
Reasonably, no, Nintendo isn't going to attack all monster games. So Digimon and company are in no danger.
It's mainly because Pocketpair fills its deck with fakemon that could be fusions, regional forms, or evolutions of certain Pokemon instead of being their own completely original creations. And what's more, they constantly play the provocation card to then position themselves as the small independent studio that's fallen victim to the giant.
With the sales they've generated, and being backed by Sony, we're no longer dealing with a small, low-income company that's making do with its modest means.
Then, looking at Pocketpair's history, it's full of bootlegs of all kinds.
We can blame Nintendo's attitude, but don't think that Pocketpair isn't white.