Sprites are there so you can make your own gear. You can make ones with extra stat bonuses, etc. And later when the game is further developed there will be sprite battles (yay Pokemon!) from what I see on the JP wiki.
To raise it's mood you need to feed it Lollipops from the cash shop or the green potion from the Sprite Shops.
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I think I'll be loving Angoya Island too... will definitely be using Jale as my starting town in OB. The quests are horrible though, once you start it kind of makes you want to keep going. x__x
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