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From: Game Freak expands on the reasons for not including all Pokemon in Pokemon Sword & Shield, talks about the importance of Home going forward
the team felt the decision to not include all Pokemon in Sword/Shield is one that had to be made sooner or later for the series
This is the part that people need to understand. It was going to happen eventually. It had to happen eventually. There's 1,000 pokemon at this point, and coding, balancing, and bug testing that many pokemon is a massive task. Period.