Palworld Reaches 32M Players Amid Nintendo Pokémon Lawsuit Threat

Author : Harper May 18,2025

Since its early access launch in January 2024, Palworld has captivated over 32 million players across various platforms including PC via Steam, Xbox, and PlayStation 5. Dubbed "Pokémon with guns" before its record-breaking release, the crafting and survival game has quickly become a sensation.

"Thank you so much!" Pocketpair expressed in a tweet. "As always, your support means the world to us!"

John 'Bucky' Buckley, Pocketpair's Communications Director and Publishing Manager, added, "We will continue to work hard to make Palworld year 2 even better!"

Palworld debuted on Steam for $30 and was instantly available on Xbox and PC through Game Pass, shattering sales and concurrent player records. The overwhelming success overwhelmed Pocketpair, with CEO Takuro Mizobe admitting that the company struggled to manage the massive profits. Seizing the opportunity, Pocketpair quickly inked a deal with Sony to establish Palworld Entertainment, a new venture aimed at expanding the game's IP and launching it on PS5.

Amidst its ongoing updates, Palworld faces a high-stakes patent lawsuit from Nintendo and The Pokémon Company. The lawsuit, filed in response to comparisons and accusations of Palworld's Pals resembling Pokémon, seeks 5 million yen (approximately $32,846) each, plus late payment damages and an injunction to halt Palworld's release. The legal battle revolves around three Japan-based patents related to capturing Pokémon in a virtual field, a mechanic mirrored in Palworld with the use of a Pal Sphere to capture monsters.

In a recent update, Pocketpair modified how players summon Pals, sparking speculation that the change was influenced by the ongoing patent lawsuit. Legal experts view the lawsuit as a testament to the competitive threat posed by Palworld. Pocketpair remains defiant, ready to defend its 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 roll out major updates and forging collaborations, including a notable crossover with Terraria.