Is 'Palworld' Ripping Off Pokemon? Developer Hit By Controversy And Threats
Portfolio Pulse from Ananya Gairola
The Pokemon Company, funded by Nintendo ADR (OTC:NTDOY), is investigating 'Palworld' for potential intellectual property infringement. 'Palworld', developed by PocketPair, has been criticized for its resemblance to Pokemon, selling over 8 million copies since January 18. Despite controversy and threats to its developers, the game has seen significant success, even surpassing major titles in initial sales.

January 25, 2024 | 10:19 am
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NEUTRAL IMPACT
Nintendo ADR (OTC:NTDOY), as a funder of The Pokemon Company, may face reputational risks or potential legal costs due to the controversy surrounding 'Palworld'. However, the game's success could also reflect positively on the industry's growth.
While the controversy could lead to legal actions that may incur costs, the overall impact on Nintendo's stock is likely neutral in the short term. The success of 'Palworld' indicates a strong market for games similar to Pokemon, which could be seen as a positive sign for the industry. However, the potential reputational risk and legal costs are factors that could offset any positive sentiment.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70