Since its early access launch in January 2024, Palworld has attracted over 32 million players across all platforms, including PC via Steam, Xbox, and PlayStation 5. Dubbed "Pokémon with guns" before its record-breaking release, the crafting and survival game from developer Pocketpair has taken the gaming world by storm.

"Thank you so much!" Pocketpair expressed on X (formerly Twitter). "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 launched on Steam for $30 and was immediately available on Game Pass for Xbox and PC, breaking sales and concurrent player number records. The game's launch was so monumental that Pocketpair's CEO, Takuro Mizobe, admitted the developer struggled to manage the massive profits generated. In response, Pocketpair quickly capitalized on the game's success by signing a deal with Sony to create Palworld Entertainment, a new business focused on expanding the IP and bringing the game to PS5.

While Pocketpair continues to enhance Palworld with updates, a high-profile patent lawsuit with Nintendo and The Pokémon Company casts a shadow over the game's future. Following Palworld'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.

In November, Pocketpair confirmed the three Japan-based patents it is being sued over, which involve catching Pokémon in a virtual field. Palworld features a similar mechanic where players throw a Pal Sphere at monsters to capture them, reminiscent of the mechanic in the 2022 Nintendo Switch exclusive, Pokémon Legends: Arceus. Recently, Pocketpair modified how players summon Pals, leading to speculation that the change was related to the ongoing patent infringement lawsuit.

Patent experts view Nintendo and The Pokémon Company's lawsuit against Pocketpair as a sign of the threat posed by Palworld. The outcome of this legal battle is eagerly anticipated, with Pocketpair vowing 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, releasing major updates for Palworld and forging collaborations with other major video games, including a crossover with Terraria.