Palworld Developer Faces Pressure to Patch Game Amid Nintendo and Pokémon Lawsuit

Palworld developer Pocketpair has recently disclosed that changes made to the game through patches were necessitated by an ongoing patent lawsuit filed by Nintendo and The Pokémon Company. Palworld, which launched in early 2024 on Steam for $30 and on Xbox and PC via Game Pass, achieved unprecedented sales and concurrent player numbers. The game's success led to overwhelming profits, prompting Pocketpair to form Palworld Entertainment with Sony to further expand the IP, eventually bringing the game to PS5.

The controversy arose due to similarities between Palworld's Pals and Pokémon, leading to accusations of design plagiarism. Instead of pursuing a copyright infringement lawsuit, Nintendo and The Pokémon Company opted for a patent lawsuit, seeking 5 million yen each in damages plus late fees 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 gameplay in Pokémon Legends: Arceus.

In response to the lawsuit, Pocketpair made significant changes to Palworld. Patch v0.3.11, released in November 2024, altered the summoning mechanic from throwing Pal Spheres to a static summon beside the player, alongside other gameplay adjustments. These changes were confirmed to be a direct result of the litigation. More recently, Patch v0.5.5 modified the gliding mechanic, requiring players to use a glider rather than relying on Pals, though Pals still offer passive gliding buffs.

Pocketpair described these modifications as "compromises" made to avoid further legal repercussions that could disrupt the game's development and distribution. The studio expressed regret over these changes but emphasized their necessity to maintain the game's availability. Despite these adjustments, Pocketpair remains committed to challenging the validity of the patents in question.

In a comprehensive statement, Pocketpair thanked fans for their support and apologized for the limited transparency during the lawsuit. They reiterated their dedication to developing Palworld 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 game's challenges, including the debunked accusations of using generative AI and stealing Pokémon models. Buckley also mentioned the unexpected nature of Nintendo's patent lawsuit, describing it as a "shock" to the studio.