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Its amazing what fans can do with a little money, making awesome games. Why cant the Pokémon Company do that?
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Because the fans actually have passion and put care and effort into their games.
i think this is a rather unfair take.
pretend for a moment you're a fangame developer. you as a developer don't have any sort of management to report to, as your only boss is time management and your own capabilities to make your own game. budget is hardly an issue as you can use existing resources out there. in the event that you need something custom made and can't do it yourself, that's when you need your own team (and keep in mind this is all working for free). not to deviate from the point too much but most people would want to see some progress made on your game such as plot, mapping, some idea or description of what the characters in your game are going to be like, things like that (unless you're doing this with a group of friends but that's a different thing).
the bigger point being is that sometimes fan games do appeal more to the "mature" age group of pokemon players because there's no real restriction saying you can't. your audience is whoever the heck you want, and you have that freedom to direct your game how you please. your biggest risk of your game failing is lots of sunken time. in a lot of ways, it can be assumed that fangame developers have a lot of advantages on their side that your typical, paid game developer doesn't. what if there's a strict schedule to adhere to? who, specifically, do you dedicate to working on newer pokemon games: is it the more experienced programmers? what about the newer ones, how do they gain experience and become better?
there's so much more that people don't really think about or give a second thought to. i'd like to be clear and say that Game Freak is far from perfect: there is a lot they can be criticised for. but i dunno, saying that they lack passion and care is an odd take, for me.
The management is the problem. Your regular old paid programmer isn't going to be making the calls on what games/content to make and not to make, and that's where the fans are outdoing Game Freak and TPC. Maybe some of the lower level programmers have some kind of passion, but they also don't have much of an impact on the series. The corporate executives at the top, on the other hand, most certainly do not and only seem to want to make a quick buck. And as Nintendo's first party IPs on the Switch show, making an ambitious, high budget game that goes all out to make the best experience they possibly can does work, in fact the IPs that do are breaking sales records on the Switch. It's not a "mature" thing nor an attempt to ignore a wider audience. They just... make a good game and the fans gravitate towards that. Shocking conclusion, I know.
if we're using sales as a metric of how much a company cares, then SwSh is like the third best selling titles after GSC, so I guess Game Freak must be doing something right? you can argue whether or not that, and SwSh being one of the best selling Switch titles, are deserved, and that's not even taking into consideration how much they might sell come this winter because of the Crown Tundra DLC. keep in mind Super Mario Odyssey and Breath of the Wild have been out since 2017 and SwSh sales are keeping up with them. interesting, huh?
like, i don't disagree with your overall point that maybe management is a problem, but i feel like it's odd that you point to sales as overall proof of hard work and passion paying off while somehow either ignoring or forgetting SwSh's sales so far.
It's not beating the other games by much though, Pokemon games all tend to sell in the same 10-20 million range. A full fledged console game where they go all out could sell even higher.
Some cities have lower graphics?and larger cities
A problem that I have with SWSH is that some dialogue lacks emotion. Like when Hop talked about his injured brother that sounded detached. If Game Freak tackles death. Have characters react realistically.
As fan-made games were made as non-profit games in mind, the makers, especially those in group circles, don't need to rush their games to completion and putting their effort of detail in their game mechanics. And they can expand their mechanics whatever they can.
And organization played a bigger factor too. It's sad to see the GF staff were not unionized in that matter.
Some cities have lower graphics?
so there's two ways to take this. feel free to correct me if im wrong here, it seems like you fall in one of these camps (mainly the second one):
a) pokemon games have always sold well and have been considered best sellers of their respective consoles for years. it can be said that they're pretty consistent in this regard.
b) because pokemon games haven't broke the 20 mil mark since GSC, it shows that Game Freak hasn't really striven to re-create that same feeling that captured players in the series in the same sense that they captured their older players in RBY and GSC.
i can see that second perspective and honestly, i can almost agree with it. as i mentioned before, there are a lot of things one can criticise Game Freak for. SwSh's main wild area definitely doesn't look the prettiest (far from it) compared to what they could do which is what we've seen in IoA. they've gotten worse over the years as far as online connectivity goes (why is Y-comm so bad....), among many, many other things. for better or worse (getting back to the topic at hand), this all goes back to what i mentioned before — that fangame developers have a lot more time and freedom on their hands — at least moreso than Game Freak does, which is why some may have gotten the impression that SOME (definitely not all) fangames look more polished than main series games.
the bigger point of what i want to say: i don't know if it's completely fair to make a 1:1 comparison between what fans can do and what Game Freak does.