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The Pokemon Company releases a statement regarding Palworld: Inquiries Regarding Other Companies’ Games
(corporate.pokemon.co.jp)
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I'm not a Nintendo fan, but:
Why does this read the same to me as "I am not racist, but:"
Dude, I don't even own a single Nintendo hardware! I just think the Palworld fans are utterly toxic, a lot of Nintendo haters' only argument seeming to be "muh unreal engine", with everything else just being there as a deflection once someone points out it.
The graphics argument is so weak anyway as Palworld is basically a more watered down ark survival with worse graphics and a pokemon esque design philosophy.