Palworld developer Pocketpair has revealed that recent updates to the game were influenced by an ongoing patent lawsuit filed by Nintendo and The Pokémon Company. The game, which launched in early 2024 on Steam for $30 and was simultaneously available on Xbox and PC via Game Pass, shattered sales records and player concurrency benchmarks. The overwhelming success of Palworld prompted Pocketpair CEO Takuro Mizobe to admit that the company was initially overwhelmed by the profits. Capitalizing on this success, Pocketpair swiftly entered into a partnership with Sony, creating Palworld Entertainment to expand the franchise, which later extended to a PS5 release.
The launch of Palworld sparked debates over similarities between its creatures, known as Pals, and Pokémon, leading to accusations of design plagiarism. Instead of pursuing a copyright infringement case, Nintendo and The Pokémon Company opted for a patent lawsuit, demanding 5 million yen (approximately $32,846) each, plus additional damages and an injunction to halt Palworld's distribution.
In November, Pocketpair acknowledged the lawsuit centered around three Japanese patents related to capturing Pokémon in virtual environments. Palworld features a similar mechanic where players use a Pal Sphere to capture monsters in the wild, reminiscent of the gameplay in the 2022 Nintendo Switch title, Pokémon Legends: Arceus.
Six months later, Pocketpair confirmed that the modifications introduced in Patch v0.3.11, released in November 2024, were a direct result of the legal action. This update altered the summoning mechanic from throwing Pal Spheres to a static summoning near the player, alongside other gameplay adjustments. Pocketpair stated that without these changes, the gameplay experience would have been significantly worse.
The latest update, Patch v0.5.5, further modifies the game by changing the gliding mechanic. Now, players must use a glider instead of relying on Pals for gliding, although Pals still offer passive gliding buffs. These adjustments, described by Pocketpair as "compromises," are necessary to avoid an injunction that could stop Palworld's development and sales.
Despite these alterations, Pocketpair remains committed to contesting the lawsuit, particularly by challenging the validity of the patents in question. In their official statement, Pocketpair expressed gratitude for the continued support of their fans and apologized for the limited transparency during the litigation. They emphasized their dedication to the ongoing development of Palworld and the introduction of new content.
During the Game Developers Conference (GDC) in March, IGN interviewed John "Bucky" Buckley, communications director and publishing manager for Pocketpair. In his talk titled 'Community Management Summit: A Palworld Roller Coaster: Surviving the Drop,' Buckley discussed various challenges faced by Palworld, including accusations of using generative AI and copying Pokémon models, both of which have been refuted. He also touched on the unexpected nature of the patent lawsuit from Nintendo, expressing the studio's surprise at the legal action.
