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The Pokemon Company releases a statement regarding Palworld: Inquiries Regarding Other Companies’ Games
(corporate.pokemon.co.jp)
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this post was submitted on 25 Jan 2024
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If the average person can't tell the difference between a Pal and Pokemon enough of a case could be made to require changes to the assets.
Average person - my mom - can not even tell the difference between the official 500+ Pokémon.