Since its early access launch in January 2024, Palworld has attracted over 32 million players across all platforms, including PC via Steam, Xbox, and PlayStation 5. The game, which has been humorously dubbed “Pokémon with guns,” has taken the gaming world by storm. Developer Pocketpair expressed their gratitude on social media, saying, “Thank you so much! As always, your support means the world to us!” Communications Director and Publishing Manager John 'Bucky' Buckley added, “We will continue to work hard to make Palworld year 2 even better!”
Launched on Steam for $30 and simultaneously available on Xbox and PC via Game Pass, Palworld shattered sales records and achieved unprecedented concurrent player numbers. The overwhelming success led Pocketpair's CEO Takuro Mizobe to admit that the company was unprepared for the massive profits generated. In response, Pocketpair quickly capitalized on this success by signing a deal with Sony to establish Palworld Entertainment, a new business focused on expanding the IP and bringing the game to the PlayStation 5.
Amidst ongoing updates to Palworld, Pocketpair faces a significant legal challenge. Nintendo and The Pokémon Company have initiated a high-profile patent lawsuit against Pocketpair. The lawsuit stems from comparisons between Palworld’s Pals and Pokémon, with some accusing Pocketpair of copying Pokémon designs. Instead of pursuing a copyright infringement lawsuit, Nintendo and The Pokémon Company are seeking 5 million yen (approximately $32,846) each, plus late payment damages, and an injunction to block Palworld's release.
Pocketpair confirmed that the lawsuit revolves around three Japan-based patents related to catching Pokémon in a virtual field. Palworld features a similar mechanic where players throw a ball-like object called a Pal Sphere to capture monsters, reminiscent of the system in the 2022 Nintendo Switch exclusive Pokémon Legends: Arceus. Recent changes to how players summon Pals in Palworld have sparked speculation about potential adjustments due to the patent lawsuit. Patent experts view this lawsuit as evidence of the competitive threat posed by Palworld. Pocketpair remains steadfast, vowing to defend their position in court, stating, “We will continue to assert our position in this case through future legal proceedings.”
Despite the legal battles, Pocketpair has not slowed down, continuing to roll out major updates for Palworld and forging collaborations with other popular video games, such as a crossover with Terraria.