Palworld developer Pocketpair has recently disclosed that changes made to the game via patches were necessitated by an ongoing patent lawsuit with Nintendo and The Pokémon Company. Launched on Steam for $30 and integrated into Game Pass on Xbox and PC in early 2024, Palworld achieved unprecedented sales and concurrent player numbers. The game's overwhelming success led Pocketpair CEO Takuro Mizobe to admit that the studio was unprepared for the massive profits. Seizing the opportunity, Pocketpair swiftly entered into an agreement with Sony to create Palworld Entertainment, aimed at expanding the franchise, culminating in the game's release on PS5.

Following its launch, Palworld drew comparisons to Pokémon, with accusations of design plagiarism surfacing. Instead of pursuing a copyright infringement claim, Nintendo and The Pokémon Company opted for a patent lawsuit, demanding 5 million yen (approximately $32,846) each, plus damages for late payment, and seeking an injunction to halt Palworld's release.

In November, Pocketpair acknowledged the lawsuit centered around three Japan-based patents related to capturing Pokémon in a virtual field. Palworld features a similar mechanic where players use a Pal Sphere to catch monsters in the wild, reminiscent of the 2022 Nintendo Switch title, Pokémon Legends: Arceus.

Half a year later, Pocketpair confirmed that the changes introduced in Patch v0.3.11 in November 2024 were indeed a result of the litigation. This update removed the ability to summon Pals by throwing Pal Spheres, replacing it with a static summon beside the player. Several other mechanics were also altered in this patch. Pocketpair stated that without these modifications, the gameplay experience would have suffered even more.

Further adjustments came with Patch v0.5.5, which shifted gliding mechanics from using Pals to requiring a glider in the player's inventory. Although Pals still offer passive gliding buffs, this change marks another compromise forced upon Pocketpair due to legal pressures.

Pocketpair described these alterations as necessary to prevent further disruptions to Palworld's development and distribution, expressing disappointment but emphasizing their commitment to the game's ongoing development. Despite these concessions, the studio continues to challenge the validity of the patents in question.

Pocketpair's full statement reflects gratitude for their fans' support and apologizes for the limited information shared during the legal proceedings. They reaffirm their dedication to delivering new content for Palworld.

At the Game Developers Conference (GDC) in March, IGN interviewed John “Bucky” Buckley, Pocketpair's communications director and publishing manager. Buckley discussed the challenges Palworld faced, including accusations of using generative AI and stealing Pokémon models, which have since been debunked. He also mentioned that the patent infringement lawsuit from Nintendo was unexpected and had caught the studio off guard.