Nintendo and the Pokémon company suing Palworld for the most ridiculous reasons such as the capsules is honestly stupid. Good luck going after the original creators of gashapon (the very thing that Pokémon is heavily inspired by) and Atlus (the developers of Shin Megami Tensei, the original monster catcher that was made years before Pokémon) if we go by their rules.
Honestly, they should've just dish out a Pokémon experience everyone asks for and to let the competition stay healthy if they wanted their audience back. They only have themselves to blame for bringing their franchise to a quality downfall.