"Palworld Developer Forced to Patch Game Amid Nintendo, Pokémon Lawsuit"

Palworld developer Pocketpair has recently disclosed that changes implemented in the game were necessitated by an ongoing patent lawsuit with Nintendo and The Pokémon Company. Launched early in 2024, Palworld quickly became a sensation, priced at $30 on Steam and available on Xbox and PC via Game Pass, shattering sales and concurrent player records. The overwhelming success led to the establishment of Palworld Entertainment in collaboration with Sony, aimed at expanding the IP, and subsequently, the game was released on PS5.

The similarities between Palworld's creatures, known as Pals, and Pokémon sparked accusations of design plagiarism. However, instead of pursuing a copyright infringement lawsuit, Nintendo and The Pokémon Company opted for a patent lawsuit, seeking 5 million yen each, plus damages for late payment, and an injunction to halt Palworld's distribution.

Pocketpair confirmed in November that it was being sued over three Japan-based patents related to capturing creatures in a virtual field. Palworld features a similar mechanic where players throw a Pal Sphere at monsters to capture them, reminiscent of the system used in Pokémon Legends: Arceus.

In response to the legal pressure, Pocketpair made significant changes to Palworld. Patch v0.3.11, released in November 2024, altered the game by removing the ability to summon Pals by throwing Pal Spheres, replacing it with a static summon next to the player. This and other adjustments were directly influenced by the lawsuit, as Pocketpair admitted. The studio stated that without these changes, the gameplay experience could have deteriorated even further.

Further adjustments were introduced with Patch v0.5.5, which modified the gliding mechanic. Instead of using Pals to glide, players must now use a glider, although Pals still offer passive gliding buffs. These changes were described by Pocketpair as "compromises" made to avoid a potential injunction that could stop Palworld's development and sales.

Despite these alterations, Pocketpair remains committed to challenging the validity of the patents in question. The studio expressed its regret over the necessary changes and its ongoing dedication to the development of Palworld and the delivery of new content to its fans.

In a detailed statement, Pocketpair emphasized its gratitude for fan support and apologized for the limited transparency during the litigation. The studio also acknowledged the disappointment felt by both the team and the players regarding the gameplay modifications.

At the Game Developers Conference in March, John "Bucky" Buckley, Pocketpair's communications director and publishing manager, discussed the studio's challenges, including the unfounded accusations of using generative AI and stealing Pokémon models. Buckley also shared that the patent lawsuit from Nintendo came as a complete surprise to the studio.