>>3832204
>in japan.
Yes, Japan, the only market Nintendo really cares about.

>and afaik yokai watch never threatened nintendo's dominance over the physical toy market.
They had toys and merch.

>not only did palworld get big for a little bit but they made some merchandise deals with sony, and the case only popped up AFTER that deal.
That was over a year ago and nothing ever came of it. Palworld already fell out of relevance. Nintendo never cared about how "big" it allegedly got, they just didn't like how it fucked with their IP.