Palworld Changes Game After Nintendo Lawsuit

Palworld, the open-world creature-collecting game that exploded in popularity earlier this year, is now facing serious growing pains. Its developer, Pocketpair, has confirmed that recent updates to the game weren't just routine balancing or feature tweaks, they were necessary changes prompted by a patent lawsuit filed by Nintendo and The Pokémon Company.

When Palworld first launched in early 2024, it took the gaming world by storm. Priced at $30 and included in Xbox Game Pass, it quickly broke records in sales and concurrent player numbers. The success was so overwhelming that, according to Pocketpair CEO Takuro Mizobe, the company initially struggled to handle the massive profits rolling in. In the wake of its success, the studio even teamed up with Sony to form Palworld Entertainment and expand the brand further, eventually bringing the game to the PlayStation 5.

But the game’s rise wasn’t without controversy. Many players and critics pointed out the striking similarities between Palworld’s "Pals" and Pokémon, sparking online debates and accusations of design plagiarism. Instead of pursuing a traditional copyright lawsuit, Nintendo and The Pokémon Company took a different legal route, filing a patent infringement claim. They’re seeking around 5 million yen each (roughly $32,800), along with late payment damages and, more significantly, a potential injunction that could shut the game down.

The core of the legal dispute revolves around gameplay mechanics similar to those seen in Pokémon Legends: Arceus, especially the act of throwing a sphere to capture creatures in the wild. Pocketpair confirmed that these mechanics are part of the lawsuit, which is based on three specific Japan-based patents.

In November 2024, the studio rolled out Patch v0.3.11, confirming that it altered gameplay due to the ongoing litigation. The ability to summon Pals by tossing a “Pal Sphere” was removed. Now, Pals appear beside the player statically rather than being summoned from a distance. Several other features were also changed quietly during that update.

More recently, Patch v0.5.5 has made another notable adjustment, gliding. Previously, some Pals allowed players to glide through the air, but now players must use an actual glider item instead. While Pals can still enhance gliding with passive buffs, they can no longer be the gliding tool themselves.

Pocketpair described these updates as unfortunate but necessary compromises. They’ve expressed disappointment, knowing fans may be frustrated. Still, the team emphasized that the alternative, potential game shutdowns or development delays, would be worse.

Despite the forced changes, Pocketpair remains firm in its position. The studio continues to challenge the lawsuit and is aiming to prove that the patents in question should be invalid. While the legal fight goes on, the team is focused on keeping Palworld alive and moving forward, promising more content and improvements for its dedicated player base.

Behind the scenes, Pocketpair’s staff have also been open about how turbulent the journey has been. During a talk at the Game Developers Conference, Pocketpair’s communications lead, John “Bucky” Buckley, shared that the lawsuit “came as a shock” and was something they never anticipated. He also pushed back against other earlier controversies, like accusations of AI-generated designs and copying Pokémon models, claims that have since been retracted or debunked.

Palworld might be battling more than just in-game creatures, but it looks like the developers are determined to keep moving forward, even if it means making some tough decisions along the way.