Kerotan said: So pokemon has slayed yokai watch. I bet level 5 are pissed and jealous. I bet they thought YW3 would be the series peak but along come Nintendo with the one two Sucker Punch of pokemon go and Sumo. Nintendo have done well to keep yokai watch mainly on the 3DS for so long and it's benefited them greatly but after getting drop kicked by Nintendo they'll no doubt start looking a lot more towards the android / iOS market.
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I don't think Pokémon has anything to do with the success or failings of Yo-kai Watch; don't fall into that lazy Western media trap of comparing all Japanese games in this genre to Pokémon.
From what I can gather, Yo-kai Watch didn't do so hot in Japan when it was first released in 2013. In fact you can see people in this very thread at the time saying "poor Level-5" upon the first game's Japanese release. Then some stupid-looking anime dance became popular in Japan, like a Gangnam Style hit, and it took off. So now that the dance craze has pretty much died, the Yo-kai Watch games, which were never that good to begin with, are fading with it. Also didn't help that Level-5 completely and ridiculously oversaturated the market, to the point where it looks like they were trying to milk it for all it's worth as fast as they could, maybe they don't think it'll be all that relevant on the next Nintendo handheld (the successor for the 3DS).