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. The game, which was released in early 2024 at a price of $30 and included in Game Pass for Xbox and PC, achieved unprecedented sales and player engagement. The overwhelming success led Pocketpair's CEO, Takuro Mizobe, to admit that the company was unprepared for the massive profits generated. In response to the game's popularity, Pocketpair quickly moved to expand its reach by partnering with Sony to create Palworld Entertainment, aimed at further developing the IP, and subsequently launched the game on PS5.
Following Palworld's launch, the game drew comparisons to Pokémon, with some alleging that Pocketpair had copied 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 distribution.
In November, Pocketpair acknowledged the lawsuit centered around three Japanese patents related to capturing Pokémon in a virtual environment. Palworld features a similar mechanic where players use a Pal Sphere to capture creatures in the wild, reminiscent of the gameplay in the 2022 Nintendo Switch title, Pokémon Legends: Arceus.
Six months later, Pocketpair confirmed that the changes introduced in Patch v0.3.11, released in November 2024, were indeed a direct result of the legal action. This update altered the summoning mechanic from throwing Pal Spheres to a static summon beside the player, alongside other gameplay adjustments. Pocketpair stated that without these modifications, the gameplay experience would have suffered even more significantly.
Further adjustments were made with the release of Patch v0.5.5, which changed the gliding mechanic from using Pals to utilizing a glider. While Pals still offer passive gliding buffs, players must now carry a glider in their inventory to glide. Pocketpair described these alterations as "compromises" forced upon them 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 company expressed regret over the necessary adjustments but emphasized their importance in maintaining the game's development trajectory.
Pocketpair's full statement reflects their gratitude for fan support and their ongoing efforts to navigate the legal challenges while continuing to develop Palworld. They apologized for the limited transparency during the litigation and reiterated their dedication to delivering new content to their community.
At the Game Developers Conference (GDC) in March, IGN interviewed John "Bucky" Buckley, Pocketpair's communications director and publishing manager. Buckley discussed the studio's challenges, including accusations of using generative AI and copying Pokémon models, which have been debunked. He also touched on the unexpected nature of the patent lawsuit from Nintendo, describing it as a "shock" to the studio.