Palworld developer Pocketpair has disclosed that recent updates to the game were necessitated by an ongoing patent lawsuit brought by Nintendo and The Pokémon Company. Launched in early 2024 on Steam for $30 and included in Game Pass on Xbox and PC, Palworld quickly shattered sales and concurrent player records. Takuro Mizobe, the head of Pocketpair, acknowledged that the game's massive success overwhelmed the studio with profits, leading them to swiftly expand by forming Palworld Entertainment in partnership with Sony to further develop the IP, subsequently bringing the game to PS5.
Following its launch, Palworld faced scrutiny for similarities between its Pals and Pokémon, prompting accusations of design theft. However, instead of pursuing a copyright infringement lawsuit, Nintendo and The Pokémon Company opted for a patent dispute, seeking 5 million yen each (around $32,846) plus damages for late payments and an injunction to halt Palworld's distribution.
In November, Pocketpair confirmed they were being sued over three Japan-based patents related to capturing Pokémon in a virtual field. Palworld features a similar mechanic where players capture creatures using a Pal Sphere, reminiscent of the gameplay in the 2022 Nintendo Switch title Pokémon Legends: Arceus.
Six months on, Pocketpair has admitted that changes implemented in Patch v0.3.11 in November 2024 were indeed a response to the legal action. This update removed the ability to summon Pals by throwing Pal Spheres, opting instead for a static summon beside the player, alongside other modifications to the game's mechanics. Pocketpair stated that without these alterations, the gameplay experience would have suffered even more.
Further adjustments are being made with Patch v0.5.5, where gliding will now require a glider from the player's inventory rather than using Pals. While Pals will still offer passive gliding buffs, these changes reflect the compromises Pocketpair feels forced to make to avoid an injunction that could stop Palworld's development and sale.
Pocketpair expressed disappointment over these necessary changes but emphasized their importance in maintaining the game's development. They continue to challenge the validity of the patents in question, despite the adjustments made to the game.
Pocketpair's full statement expresses gratitude to their fans, apologizes for the limited transparency due to the ongoing legal battle, and reaffirms their commitment to developing Palworld and delivering new content.
At the Game Developers Conference (GDC) in March, IGN interviewed John “Bucky” Buckley, communications director and publishing manager for Pocketpair. Buckley, who spoke at the conference about Palworld's challenges, including accusations of using generative AI and stealing Pokémon models, also touched on the unexpected nature of the patent lawsuit from Nintendo, stating it was a "shock" to the studio.
