Palworld Hits 32 Million Players During Year 1 as Nintendo Pokémon Lawsuit Looms Over the Horizon

Palworld, the crafting and survival game dubbed "Pokémon with guns," has achieved remarkable success, attracting over 32 million players across Steam, Xbox, and PlayStation 5 since its January 2024 early access launch. Developer Pocketpair expressed gratitude for this overwhelming player support, promising continued development to enhance Palworld's second year.

The game's initial launch, priced at $30 on Steam and included in Xbox Game Pass, shattered sales and concurrent player records. This explosive popularity led to such significant profits that Pocketpair's CEO, Takuro Mizobe, publicly stated the company was initially overwhelmed by the influx of revenue. Capitalizing on this success, Pocketpair partnered with Sony to establish Palworld Entertainment, an entity dedicated to expanding the Palworld intellectual property and facilitating the PS5 release.

However, Palworld's journey hasn't been without challenges. A high-profile patent infringement lawsuit filed by Nintendo and The Pokémon Company casts a shadow over the game's future. Following Palworld's launch, comparisons to Pokémon were inevitable, with some critics accusing Pocketpair of design plagiarism. 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 in damages, plus late payment penalties, and an injunction halting Palworld's distribution.

Pocketpair acknowledged the three Japanese patents at the heart of the dispute in November, patents related to the virtual capture of creatures in a field. Palworld's Pal Sphere capturing mechanic bears resemblance to the system in Pokémon Legends: Arceus (2022). Interestingly, Pocketpair recently altered the Pal summoning mechanism, prompting speculation about its connection to the ongoing legal battle.

Patent law experts view Nintendo and The Pokémon Company's lawsuit as a clear indication of the competitive threat posed by Palworld's success. The outcome of the lawsuit, whether through settlement or court decision, remains highly anticipated. Despite the legal proceedings, Pocketpair remains resolute, vowing to defend its position vigorously and continuing to release major updates for Palworld, including collaborations with other prominent video games like Terraria.