Palworld Patched as Nintendo Lawsuit Looms

Palworld developer Pocketpair has revealed that recent updates to the game were necessitated by legal pressure from Nintendo and The Pokémon Company's patent lawsuit.

Following its explosive January 2024 launch on Steam ($30) and Xbox/PC Game Pass, which shattered sales and concurrent player records, Pocketpair founder Takuro Mizobe admitted the studio struggled to manage the unprecedented financial success. The developer quickly capitalized on this momentum by partnering with Sony to establish Palworld Entertainment for IP expansion, subsequently releasing the PS5 version.

Despite initial controversy surrounding similarities between Palworld's creatures and Pokémon designs, Nintendo/The Pokémon Company pursued patent litigation rather than copyright claims. The companies seek ¥5 million (≈$32,846) each plus damages and potential sales injunctions.

The lawsuit focuses on three Japanese patents regarding creature-capture mechanics resembling Pokémon Legends: Arceus' (2022) systems. In November 2024, Pocketpair acknowledged implementing changes due to these legal pressures, specifically altering Pal Sphere summoning mechanics in v0.3.11.

Pocketpair's latest v0.5.5 update introduces further adjustments, replacing Pal-based gliding with traditional glider equipment - though Pals still provide passive bonuses. These changes were described as painful but necessary compromises to avoid potentially devastating injunctions.

The developer maintains its commitment to challenging the patents' validity while apologizing to fans for gameplay alterations. In a full statement, Pocketpair emphasized:

We regret these changes but believe they're essential to continue developing Palworld. Our team shares players' frustration but must prioritize the game's future over specific mechanics that risk legal action.

At March's GDC, Pocketpair's John Buckley candidly discussed the studio's challenges during his talk 'Surviving the Palworld Rollercoaster.' He revealed Nintendo's lawsuit surprised the entire team, acknowledging they never anticipated patent litigation for creature capture mechanics.