Since its early access launch in January 2024, Palworld has captivated over 32 million players across all platforms. Dubbed "Pokémon with guns" before its record-breaking release, the crafting and survival game developed by Pocketpair has resonated strongly with gamers on PC via Steam, Xbox, and PlayStation 5.

Pocketpair expressed their gratitude on Twitter, stating, “Thank you so much! As always, your support means the world to us!” John 'Bucky' Buckley, the Communications Director and Publishing Manager at Pocketpair, added, “We will continue to work hard to make Palworld year 2 even better!”

Initially launched on Steam for $30 and included in Game Pass on Xbox and PC, Palworld shattered sales records and achieved unprecedented concurrent player numbers. The game's massive success overwhelmed Pocketpair, with CEO Takuro Mizobe admitting they couldn’t handle the surge in profits. Seizing the opportunity, Pocketpair swiftly signed a deal with Sony to establish Palworld Entertainment, a new venture focused on expanding the Palworld IP and launching the game on PS5.

As Pocketpair diligently updates Palworld, they face a significant legal challenge. Following the game's launch, comparisons between Palworld’s creatures (Pals) and Pokémon led to accusations of design plagiarism. Instead of pursuing a copyright infringement lawsuit, Nintendo and The Pokémon Company opted for a patent infringement lawsuit against Pocketpair, seeking 5 million yen (approximately $32,846) each, plus late payment damages and an injunction to block Palworld's release.

In November, Pocketpair confirmed they are being sued over three Japan-based patents related to catching Pokémon in a virtual field. Palworld features a similar mechanic, where players throw a Pal Sphere to capture monsters in the wild, reminiscent of the gameplay in the 2022 Nintendo Switch exclusive, Pokémon Legends: Arceus. Amidst the lawsuit, Pocketpair recently adjusted how players summon Pals, a move speculated to be in response to the patent infringement claims.

Legal experts view Nintendo and The Pokémon Company’s lawsuit as a clear indication of the competitive threat posed by Palworld. The outcome of this legal battle remains uncertain, with Pocketpair firmly committed to defending their position in court, stating, “We will continue to assert our position in this case through future legal proceedings.”

Despite the ongoing legal challenges, Pocketpair has not slowed down, continuing to roll out major updates for Palworld and forging collaborations with other major video games, such as a crossover with Terraria.