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 on Steam for $30 and included in Game Pass for Xbox and PC, Palworld quickly shattered sales and concurrent player records. The game's massive 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 for late payments and an injunction to halt Palworld's release.
Pocketpair confirmed in November that it was being sued over three Japan-based patents related to capturing Pokémon in a virtual field. Palworld features a similar mechanic where players throw a Pal Sphere to capture monsters, akin to the system in the 2022 Nintendo Switch game Pokémon Legends: Arceus.
In a recent update, Pocketpair admitted that changes made in Patch v0.3.11, released in November 2024, were a direct result of the lawsuit. This patch altered the summoning mechanic from throwing Pal Spheres to a static summon beside the player, along with other gameplay adjustments. Pocketpair stated that without these changes, the gameplay experience would have deteriorated further.
Additionally, Patch v0.5.5 introduced further modifications, shifting the gliding mechanic from using Pals to requiring a glider in the player's inventory, although Pals still offer passive gliding buffs. Pocketpair described these alterations as "compromises" made to avoid an injunction that could stop Palworld's development and sales.
Despite these changes, Pocketpair remains committed to challenging the lawsuit, focusing on proving the patents' invalidity. The studio expressed regret over the necessary adjustments but emphasized their importance in maintaining the game's development.
Pocketpair's full statement reflects gratitude for fan support and acknowledges the difficulty of transparency during ongoing litigation. They reiterated their dedication to Palworld's development and delivering new content to their community.
At the Game Developers Conference (GDC) in March, John "Bucky" Buckley, Pocketpair's communications director and publishing manager, 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.
