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Palworld ditches Pokéball-style summoning mechanic amid Nintendo legal battle
(www.eurogamer.net)
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I'd be more willing to agree if Nintendo was going after them for similar art styles. They went after them for fucking throwing balls of all things. This is going to set a horrible precedent for the game industry.
So either Nintendo didn't believe the monster designs were rip offs, or they didn't feel it was a proper violation because they've shown themselves as willing to litigate.