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Palworld's 2024: Record Launch, Nintendo Lawsuit, and the Feybreak Update

By Jeremy ·

Pocketpair dropped Palworld's Feybreak update this month, bringing the game to v0.4.11 with new areas, new Pals, new buildings, a hardcore mode, expeditions, a research system, and a Terraria crossover. It's the kind of release that would define a year for most studios. For Palworld, it's just how 2024 ends.

A Launch That Broke Records

Palworld launched on Steam for $30 and went straight into Xbox and PC Game Pass in January 2024. Within days, concurrent player numbers on Steam broke records, and sales figures were moving fast enough that Pocketpair CEO Takuro Mizobe described the launch as so large the studio couldn't handle the profits it was generating.

The comparisons to Pokémon were instant. The core loop involves exploring an open world, throwing ball-like objects called Pal Spheres at monsters to catch them, and building out a base. That mechanic overlaps meaningfully with Pokémon Legends: Arceus, Nintendo's 2022 Switch title. The comparisons generated press. Some were fair, some weren't, but they mostly missed the point of what Palworld actually is as a game.

Nintendo and The Pokémon Company decided they had a different kind of point to make.

The Nintendo Patent Lawsuit

Nintendo and The Pokémon Company didn't file a copyright infringement lawsuit. They went down the patent route, filing suit in Japan over three patents related to the mechanic of catching creatures in a virtual field environment. The two companies are seeking 5 million yen each (around $32,846) plus late payment damages, and an injunction that would block Palworld's sale entirely.

IGN spoke to patent experts about the case, with one arguing the lawsuit is evidence of how seriously Nintendo views the competitive threat Palworld represents. That reading holds up. Nintendo doesn't typically pursue patent litigation against games that don't concern them.

Pocketpair confirmed the three patents at issue and isn't backing down. Its stated position: "We will continue to assert our position in this case through future legal proceedings." What that costs in legal fees and management bandwidth over a multi-year Japanese patent dispute is a separate matter.

The Quiet Summoning Change

At some point after the lawsuit was filed, Pocketpair quietly changed how players summon their caught Pals in the field. No announcement, no explanation. Observers widely speculated it was a response to the patent claims. Pocketpair has neither confirmed nor denied that.

It's the kind of silent product change that suggests legal counsel is paying attention.

PS5, Sony, and the Year Ahead

Palworld launched on PlayStation 5 this year, with a brief delay specific to Japan. Pocketpair also signed a deal with Sony to create Palworld Entertainment, a dedicated entity for expanding the IP across licensing and media.

That Pocketpair is building IP infrastructure while simultaneously defending a lawsuit from Nintendo says something about their confidence in where the franchise is going. Whether the case is settled, litigated to a conclusion, or eventually results in an injunction remains to be seen.

Feybreak dropping on schedule, with a Terraria crossover included, while all of that runs in the background is Pocketpair's clearest answer to the question of whether any of it is slowing them down.