>>723206560
It actually isn't profitable for GameFreak, they actively complain in those same leaked documents they don't have the money to throw around even for these low budget shitshows.
This is because all of that money is being split up and funneled into other venues, such as Pokemon's other owners, all of the companies and royalties related to that particular Pokemon product, and most importantly The Pokemon Company, which requires as much money as possible in order to continue endlessly churning out merchandise and commissioning new Pokemon media, such as mobile slop, animated slop, manga slop, and all the other multimedia that The Pokemon Company was explicitly created to manage.
In fact, even TPC itself is very stingy with its investments outside of merchandise, likely because they don't want it to get expensive enough to cut into the cost of merch (especially when they're making shit like life-sized plushies en masse). That recent mobile game, Pokemon Friends, is literally an asset swap of 2016's Think!Think! with an extremely basic room decorator game layered on top of it.