Palworld Dev Forced to Patch Game Amid Nintendo, Pokémon Lawsuit

Palworld developer Pocketpair has revealed that recent updates to their game were necessitated by an ongoing patent lawsuit filed by Nintendo and The Pokémon Company. Launched in early 2024, Palworld quickly became a sensation, achieving record-breaking sales and player numbers on Steam, Xbox, and PC Game Pass. The game's success prompted Pocketpair to form Palworld Entertainment with Sony, aiming to expand the IP further, including a subsequent release on PS5.

The controversy surrounding Palworld's similarities to Pokémon led to accusations of design copying, but instead of pursuing a copyright infringement case, Nintendo and The Pokémon Company opted for a patent lawsuit. They are seeking damages of 5 million yen each, along with late payment fees and an injunction to halt Palworld's distribution.

In November, Pocketpair acknowledged the lawsuit centered around three patents related to capturing Pokémon in a virtual environment. Palworld features a similar mechanic where players use a Pal Sphere to capture creatures, akin to the gameplay in Pokémon Legends: Arceus.

Responding to legal pressures, Pocketpair introduced Patch v0.3.11 in November 2024, altering the game's mechanics. This update removed the ability to summon Pals by throwing Pal Spheres, replacing it with a static summon beside the player. These changes, Pocketpair admitted, were a direct result of the litigation, aimed at avoiding further disruption to the gameplay experience.

Further adjustments came with Patch v0.5.5, which shifted the gliding mechanic from using Pals to employing a glider, although Pals still offer passive gliding buffs. Players must now carry a glider in their inventory to utilize this feature. Pocketpair described these modifications as "compromises" forced by the threat of an injunction that could stop Palworld's development and sales.

Despite these concessions, Pocketpair is steadfast in challenging the validity of the patents in question. The studio expressed regret over the necessary changes but emphasized their importance in ensuring the game's continued development.

Pocketpair's full statement highlighted their gratitude towards fans and apologized for the limited transparency during the legal proceedings. They reaffirmed their commitment to developing Palworld and delivering new content, acknowledging the disappointment these changes may cause but stressing their necessity to prevent further disruptions.

At the Game Developers Conference (GDC) in March, John “Bucky” Buckley, communications director and publishing manager for Pocketpair, discussed the studio's challenges, including the accusations of using generative AI and copying Pokémon models. He also touched on the unexpected nature of the patent lawsuit, describing it as a "shock" to the studio.