Since its early access launch in January 2024, Palworld has attracted over 32 million players across various platforms, including PC via Steam, Xbox, and PlayStation 5. Dubbed "Pokémon with guns" before its release, the crafting and survival game has seen unprecedented success. Pocketpair, the game's developer, expressed their gratitude on Twitter, stating, "Thank you so much! As always, your support means the world to us!" They also promised continued improvements for Palworld's second year, with John 'Bucky' Buckley, the Communications Director and Publishing Manager, adding, "We will continue to work hard to make Palworld year 2 even better!"
Palworld debuted on Steam for $30 and was simultaneously added to Game Pass on Xbox and PC, setting new records for sales and concurrent player numbers. The overwhelming success led to such massive profits that Pocketpair's CEO, Takuro Mizobe, admitted the company struggled to manage them. Capitalizing on this success, Pocketpair quickly signed a deal with Sony to establish Palworld Entertainment, a new venture aimed at expanding the game's intellectual property and bringing it to the PS5.
Amidst ongoing updates to Palworld, Pocketpair faces a significant legal challenge. Following the game's launch, comparisons between Palworld's Pals and Pokémon led to accusations of design copying. Instead of pursuing a copyright infringement lawsuit, Nintendo and The Pokémon Company opted for a patent lawsuit, seeking 5 million yen (approximately $32,846) each, plus late payment damages, and an injunction to block Palworld's release. The lawsuit centers around three Japan-based patents related to capturing Pokémon in a virtual field, a mechanic similar to Palworld's Pal Sphere system, which resembles the capturing method in the 2022 Nintendo Switch exclusive, Pokémon Legends: Arceus. In response to the lawsuit, Pocketpair recently modified how players summon Pals, a change speculated to be connected to the patent dispute.
Patent experts view the lawsuit as a sign of the competitive threat posed by Palworld. As the legal battle unfolds, Pocketpair remains committed to defending their position in court, stating, "We will continue to assert our position in this case through future legal proceedings." Despite the legal challenges, Pocketpair has not slowed down, continuing to release major updates for Palworld and forging collaborations with other major video games, including a crossover with Terraria.