Palworld Developer to Patch Game Amid Legal Pressure from Nintendo, Pokémon

Palworld developer Pocketpair has revealed that recent updates to the game were necessitated by an ongoing patent lawsuit filed by Nintendo and The Pokémon Company. Launched in early 2024, Palworld quickly became a sensation, breaking sales and concurrent player records on Steam and Game Pass for Xbox and PC. Priced at $30, the game's success led to overwhelming profits, prompting Pocketpair to establish Palworld Entertainment with Sony to expand the IP, eventually bringing the game to PS5.

The game's launch sparked comparisons to Pokémon, with some accusing Pocketpair of copying Pokémon designs. Instead of pursuing a copyright infringement lawsuit, Nintendo and The Pokémon Company opted for a patent lawsuit, seeking 5 million yen (approximately $32,846) each, plus damages and an injunction to block Palworld's release. The lawsuit centers around three Japan-based patents related to capturing Pokémon in a virtual field, a mechanic similar to Palworld's Pal Sphere system, which resembles the capturing method in Pokémon Legends: Arceus.

In response to the legal action, Pocketpair confirmed that Patch v0.3.11, released in November 2024, altered the game's mechanics due to the litigation. This patch removed the ability to summon Pals by throwing Pal Spheres, replacing it with a static summon next to the player. Additional changes were also made to other game mechanics. Pocketpair stated that these modifications were necessary to prevent further deterioration of the gameplay experience.

Further adjustments came with Patch v0.5.5, which changed the gliding mechanic from using Pals to requiring a glider in the player's inventory. While Pals still provide passive gliding buffs, the core mechanic was altered. Pocketpair described these changes as "compromises" made to avoid an injunction that could halt Palworld's development and sales.

Despite these changes, Pocketpair remains committed to challenging the lawsuit, focusing on the invalidity of the patents in question. The studio expressed regret over the necessary adjustments but emphasized their importance in maintaining the game's development trajectory.

Pocketpair's full statement highlighted their gratitude for fan support and apologized for the limited transparency during the ongoing litigation. They reaffirmed their dedication to delivering new content and enhancing Palworld for their community.

At the Game Developers Conference (GDC) in March, John "Bucky" Buckley, communications director and publishing manager for Pocketpair, discussed the studio's challenges, including accusations of using generative AI and copying Pokémon models, which have been debunked. Buckley also mentioned the unexpected nature of Nintendo's patent lawsuit, describing it as a "shock" to the studio.