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Nintendo filed a lawsuit against Pocketpair, Inc.
(www.nintendo.co.jp)
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Had to wait until no one gave a shit about Palworld anymore
Wait until they make all the money that was to be made on their game.
Then yoink all of that money.
That and it also would have been a lot more bad press for Nintendo had they taken action when the game was first popular
Not that Nintendo's legal team has ever had an issue with bad press