When Content Meets Compliance: Lessons from a Recent Hololive Controversy

Usada Pekora Streaming, cited from youtube.com

In the ever-evolving world of virtual entertainment, content creators walk a fine line between creativity and compliance. This balance recently came into sharp focus when Hololive Production, one of the most prominent VTuber agencies in Japan, found itself navigating a potentially serious issue regarding content guidelines and intellectual property rights. The incident involved a popular VTuber, a retro gaming project, and a response that underscores the importance of respecting publisher guidelines in the digital age.

The Concept Behind the Project

On March 29, Hololive’s VTuber Usada Pekora launched an intriguing livestream series. The concept? She had acquired several pre-owned cartridges of Pokémon Emerald, a title originally released in 2004, and began playing through them live to see if any contained rare or unusual in-game items. For fans of both retro games and VTubers, the project was nostalgic, fun, and a creative twist on content creation.

But what began as a seemingly harmless idea quickly turned into a subject of concern within online communities.

A Question of Authenticity

Viewers soon speculated that one of the game cartridges used in Pekora’s streams may have contained modified data—possibly through third-party tools or software. The suggestion was that these cartridges had been altered from their original, legitimate versions.

Nintendo, the publisher of the Pokémon series, has clear rules outlined in its content usage guidelines. Specifically, it forbids the use of modified or altered game software in any publicly distributed content. These activities are not only labeled as potentially illegal or inappropriate, but Nintendo also reserves the right to deny creators the use of their intellectual properties in the future if such rules are violated.

While there was no direct accusation of wrongdoing against Pekora herself, the possibility that a modded game was unknowingly used created a situation that needed to be addressed—especially by a company like Cover Corporation, which operates Hololive.

VTuber’s Response and Project Suspension

On April 3, Usada Pekora responded to the situation in a live broadcast. She expressed uncertainty about the authenticity of the game cartridges and acknowledged that, due to the difficulty in verifying whether the software had been modified, she had chosen to end the project entirely. “Since I can’t confirm if it’s been tampered with or not, I’ve decided not to continue,” she explained.

Her decision reflected a responsible stance—one that prioritized compliance over content.

Cover Corporation’s Official Statement

Shortly after, Hololive’s parent company, Cover Corporation, released a formal statement on its website. According to the announcement, once the company became aware of potential guideline violations related to the game content, it contacted Nintendo for guidance and clarification.

After consulting with the game publisher, Cover received three key requests from Nintendo:

  1. Remove the Videos – To avoid misunderstanding among viewers, any content featuring the questionable game cartridges should be made private or deleted.
  2. Avoid Future Risks – All future content plans should be reviewed to ensure there is no possibility of guideline violations.
  3. Educate Talent – All affiliated VTubers should be reminded of the importance of adhering strictly to content guidelines, especially when third-party intellectual property is involved.

In response, Cover Corporation stated that it would improve internal review processes for content planning and provide further guidance and education to its talents to prevent similar situations in the future.

Community Reactions and Broader Implications

The incident sparked widespread discussion across social media and fan communities. Some praised the transparency and proactive approach taken by both Pekora and Cover, while others lamented the rigidity of content usage guidelines that can sometimes stifle creator freedom.

But ultimately, the case serves as a powerful reminder: Content creation—especially in the gaming space—does not exist in a vacuum. Creators, regardless of their size or status, must navigate a complex web of legal boundaries and platform rules.

Why This Matters

In an era where game streaming and digital content creation are at the center of online culture, the relationship between creators and rights holders has never been more important—or more delicate.

For companies like Nintendo, protecting their intellectual property is critical. They’ve seen the consequences of unchecked modding or unauthorized use of their assets, and so their rules are clear and non-negotiable. On the other hand, creators like Pekora are constantly innovating to keep their audiences engaged, often pushing the limits of what's been done before.

This situation shows the need for better communication, mutual understanding, and clear guidelines. It also highlights the responsibility that comes with a large audience and influential platform.

What Creators Can Learn

For independent streamers or aspiring VTubers, this case is a valuable lesson in best practices:

  • Do Your Homework – Always double-check whether a game or mod is allowed for streaming or monetization.
  • Stick to Official Sources – Avoid using game copies or tools from unverified sellers or shady marketplaces.
  • Ask for Help – When in doubt, reach out to publishers or platform support teams for clarity.

The Path Forward for Hololive

Cover’s decision to revise its content planning process is a positive step. As VTubing grows globally and Hololive continues to expand its reach, having a standardized and compliance-conscious system will not only protect the company but also empower its talents to create with confidence.

Moreover, the willingness to be transparent about mistakes and address them publicly builds trust with fans and stakeholders. It reinforces the idea that digital entertainment, while fun and expressive, must also be respectful and responsible.

Final Thoughts

At the heart of this incident is a simple truth: creative freedom and legal responsibility must go hand-in-hand. For creators like Usada Pekora, who strive to bring joy and innovation to their audiences, the challenge is to stay playful without crossing lines. And for agencies like Hololive, the goal is to foster environments where talent can thrive—safely and sustainably.

As the content world continues to blur the lines between play and professionalism, these kinds of cases will likely become more common. The hope is that they also become opportunities—for learning, for growth, and for better collaboration between creators and the companies whose worlds they bring to life.


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