Pocketpair, the developer behind the hit game Palworld, has revealed that recent updates to the game were necessitated by an ongoing patent lawsuit filed by Nintendo and The Pokémon Company. Launched early in 2024, Palworld quickly shattered sales and player concurrency records, debuting on Steam for $30 and simultaneously on Game Pass for Xbox and PC. The overwhelming success led Pocketpair's CEO, Takuro Mizobe, to admit that the studio was unprepared for the massive profits generated. In response to the game's popularity, Pocketpair swiftly expanded its reach by partnering with Sony to create Palworld Entertainment, a new venture aimed at broadening the game's intellectual property, and later released the game on PS5.
The success of Palworld drew inevitable comparisons to Pokémon, prompting accusations of design plagiarism. Instead of pursuing a copyright infringement claim, Nintendo and The Pokémon Company opted for a patent lawsuit, seeking damages of 5 million yen (approximately $32,846) each, plus late payment fees, and an injunction to halt Palworld's distribution.
In November, Pocketpair acknowledged the lawsuit centered around three Japanese patents related to capturing Pokémon in a virtual field. Palworld features a similar mechanic, where players use a Pal Sphere to capture monsters in the wild, reminiscent of the mechanic in the 2022 Nintendo Switch title, Pokémon Legends: Arceus.
Following half a year of legal proceedings, Pocketpair confirmed that changes implemented 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, alongside other modifications to game mechanics. Pocketpair stated that these changes were necessary to prevent further deterioration of the gameplay experience.
Further adjustments were introduced with Patch v0.5.5, which changed the gliding mechanic from using Pals to utilizing a glider. While Pals still provide passive gliding buffs, players must now carry a glider in their inventory to glide. These modifications were described by Pocketpair as "compromises" made to avoid an injunction that could disrupt the game's development and sales.
Pocketpair expressed disappointment over these changes but emphasized their necessity to maintain the game's development trajectory. The studio remains committed to challenging the patent infringement claims and asserting the invalidity of the patents in question.
In a full statement, Pocketpair thanked its fans for their support and apologized for the limited transparency during the ongoing legal battle. The studio reaffirmed its dedication to Palworld's development and promised to deliver exciting new content.
At the Game Developers Conference (GDC) in March, IGN interviewed John "Bucky" Buckley, Pocketpair's communications director and publishing manager. Buckley discussed the challenges faced by Palworld, including debunked accusations of using generative AI and stealing Pokémon models. He also touched on the unexpected nature of the patent lawsuit from Nintendo, which caught the studio off guard.