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 soared in popularity, breaking sales records and garnering massive concurrent player numbers on Steam, Xbox, and PC via Game Pass. The game's success led to significant profits, which Pocketpair's CEO, Takuro Mizobe, admitted the company was unprepared to handle. In response to the game's success, Pocketpair secured a deal with Sony to establish Palworld Entertainment, aimed at expanding the Palworld IP, eventually bringing the game to PS5.
The game's mechanics, particularly the capturing of creatures using Pal Spheres, drew comparisons to Pokémon, leading to accusations of design theft. Instead of pursuing a copyright infringement lawsuit, Nintendo and The Pokémon Company opted for a patent lawsuit, demanding 5 million yen each plus additional damages and seeking an injunction to halt Palworld's distribution.
Pocketpair confirmed in November that it was facing three Japan-based patents related to capturing Pokémon in virtual fields. The similarity between Palworld's Pal Sphere mechanic and the capturing method in Pokémon Legends: Arceus was a central issue in the lawsuit.
In a recent update, Pocketpair admitted that Patch v0.3.11, released in November 2024, altered gameplay mechanics due to the legal action. This patch eliminated the ability to summon Pals by throwing Pal Spheres, replacing it with a static summon next to the player. Additionally, Patch v0.5.5 introduced further changes, requiring players to use a glider for gliding rather than relying on Pals, although Pals still offer passive gliding buffs.
Pocketpair described these changes as "compromises" made to avoid an injunction that could severely impact the game's development and sales. Despite these adjustments, Pocketpair remains committed to challenging the validity of the patents in question.
In a statement, Pocketpair expressed gratitude to its fans and apologized for the lack of transparency due to the ongoing litigation. The company emphasized its dedication to continuing development and delivering new content for Palworld.
At the Game Developers Conference in March, Pocketpair's communications director, John "Bucky" Buckley, discussed the challenges faced by the studio, including the lawsuit, which he described as a surprising development that the team had not anticipated.
