Comment by talldayo

It's certainly terrible. But I don't think lawsuits like this threaten Nintendo at all. They own the Pokemon IP and want a court to rule whether or not their gameplay patent is violated. Worst case scenario is that they lose, and Nintendo could appeal the ruling or sue Palworld for something else like character likeness. Since Nintendo has prior art, their advantage in court is pretty sizable. Since they hire lawyers on retainer, they can effectively force the Palworld devs to settle out-of-court.

While I don't necessarily consider Palworld in the wrong, they clearly knew they were flying close to the sun. Nintendo is going to burn them for that, whether it's right or wrong or even legally correct. It's just what they do.