Since its early access launch in January 2024, Palworld has attracted over 32 million players across all platforms. The game, developed by Pocketpair and often referred to as “Pokémon with guns,” has reached this impressive milestone on PC via Steam, Xbox, and PlayStation 5.

Pocketpair expressed their gratitude, 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!”

Palworld was launched on Steam for $30 and was immediately available on Game Pass for Xbox and PC, setting new records for sales and concurrent players. The overwhelming success led Pocketpair's CEO, Takuro Mizobe, to admit that the company was initially overwhelmed by the massive profits. In response, Pocketpair quickly capitalized on the game's popularity by signing a deal with Sony to create Palworld Entertainment, aimed at expanding the IP and bringing the game to PS5.

As Pocketpair focuses on updating Palworld, a significant patent lawsuit with Nintendo and The Pokémon Company remains a looming challenge. Following Palworld’s launch, some accused Pocketpair of copying Pokémon designs, prompting Nintendo and The Pokémon Company to pursue a patent lawsuit rather than a copyright infringement case. They are 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 related to catching Pokémon in a virtual field that they are being sued over. Palworld includes a similar mechanic where players throw a Pal Sphere at monsters in a field to capture them, reminiscent of the mechanic in the 2022 Nintendo Switch game, Pokémon Legends: Arceus. Recently, Pocketpair made adjustments to how players summon Pals, which some speculate is related to the ongoing patent lawsuit.

Legal experts view Nintendo and The Pokémon Company's lawsuit as a response to the threat posed by Palworld. The outcome of this legal battle is eagerly anticipated, with Pocketpair firmly stating, “We will continue to assert our position in this case through future legal proceedings.”

Despite the legal challenges, Pocketpair has continued to release significant updates for Palworld and has even initiated collaborations with other major video games, including a crossover with Terraria.