Pokemon Z was first mentioned in 2013 after the release of Pokemon X and Y and Nintendo has been very quiet about the game; the game was supposedly going to be the sequel to the previous X and Y games however, this game was never released.
Instead of Pokemon Z, Nintendo revealed Pokemon Sun and Moon earlier this year; according to rumors, Pokemon Z was cancelled and The Pokemon Company changed focus to the next Pokemon generation instead.
This is a strange move considering the previous tradition with the Pokemon series; a second game is usually released for each Pokemon generation. The second games are usually a “Director’s Cut” of the first however with Pokemon Black and White 2 being the only acceptation to this rule. It originally looked like The Pokemon Company was finally going to start creating direct sequels to their games. It’s clear now that the developer has no intention of doing this as they’ve quickly moved to the next generation instead.
It was previously suggested by rumors that Nintendo had pushed the game back as they have enough games to release this year; reports relating to this are very mixed and some now claim that Pokemon Z has been cancelled instead.
At this point, it seems unlikely that a new game for the previous generation will be released once Pokemon Sun and Moon is launched next month. Several remakes have been released several generations later for older games which could suggest that they are working on a remade for Pokemon Diamond & Pearl instead now.
Unless Nintendo announces otherwise, Pokemon Z has most likely been cancelled and gamers will never get to see this game.
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