Palworld developer Pocketpair has revealed that recent updates to their game were necessitated by an ongoing patent lawsuit brought against them by Nintendo and The Pokémon Company. Launched in early 2024, Palworld quickly became a sensation, debuting on Steam for $30 and available on Xbox and PC via Game Pass. The game's massive success overwhelmed Pocketpair, with CEO Takuro Mizobe admitting the studio struggled to manage the influx of profits. In response, Pocketpair swiftly capitalized on the game's popularity by forming a new business, Palworld Entertainment, with Sony to expand the IP, later bringing the game to the PS5.
Following its explosive launch, Palworld drew comparisons to Pokémon, with some accusing it of copying Pokémon designs. Instead of pursuing copyright infringement, 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 release.
In November, Pocketpair acknowledged the three Japan-based patents at the center of the lawsuit, which focus on the mechanic of capturing creatures in a virtual field. This is mirrored in Palworld by the use of a Pal Sphere, akin to the capturing mechanics in Pokémon Legends: Arceus.
Six months later, Pocketpair confirmed that the changes introduced in Patch v0.3.11, released in November 2024, were indeed a response to the legal threats. This update altered the summoning mechanic from throwing Pal Spheres to a static summon beside the player and modified other gameplay elements. Pocketpair explained that without these changes, the gameplay experience would have suffered even more.
The latest update, Patch v0.5.5, further modifies gameplay, shifting the gliding mechanic from using Pals to requiring a glider in the player's inventory, although Pals still offer passive gliding buffs. Pocketpair described these adjustments as "compromises" forced upon them to prevent an injunction that could stop Palworld's development and sales.
Despite these changes, Pocketpair remains committed to contesting the lawsuit, arguing the patents' invalidity. In their official statement, the studio expressed gratitude for fan support and apologized for the limited communication during the litigation. They emphasized their dedication to continuing Palworld's development and delivering new content to their fans.
At the Game Developers Conference (GDC) in March, Pocketpair's communications director, John "Bucky" Buckley, discussed the studio's challenges, including accusations of using generative AI and copying Pokémon models, which have been debunked. Buckley also touched on the unexpected nature of the patent lawsuit, describing it as a shock to the studio.
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