Pokemon hasn't been losing money. Pokemon SV sold 10 million copies just on its first day, with another 20 million sold since. Compared to Palworld's total sales reaching only 15 million.
The controversy is that the devs had a big contest that a lot people put a lot of effort in to. They said they were going to do something with the winning entry. They then did not do it, did something else, and didnt say why.
The controversy is about the total lack of communication. The hair style is just what set it off.
