Palworld has attracted over 32 million players across all platforms since its early access debut in January 2024.

Pocketpair, the game's developer, announced that the crafting and survival title, once nicknamed “Pokémon with guns” before its record-shattering launch, reached this milestone on PC via Steam, Xbox, and PlayStation 5.

“We’re incredibly grateful!” Pocketpair shared in a tweet. “Your support continues to drive us forward!”

“We’re committed to making Palworld’s second year even more exciting!” said John 'Bucky' Buckley, Pocketpair’s Communications Director and Publishing Manager.

Palworld debuted on Steam for $30 and was available on Game Pass for Xbox and PC, setting sales and concurrent player records. Pocketpair’s CEO, Takuro Mizobe, noted that the game’s massive success brought in profits the studio struggled to manage. Seizing the opportunity, Pocketpair partnered with Sony to establish Palworld Entertainment, a new venture focused on expanding the IP, and brought the game to PS5.

As Pocketpair refines Palworld with updates, a high-stakes patent lawsuit from Nintendo and The Pokémon Company casts a shadow over its future.

Following Palworld’s explosive launch, some drew parallels between its Pals and Pokémon, with accusations of Pocketpair copying Pokémon designs. Instead of pursuing a copyright claim, Nintendo and The Pokémon Company filed a patent lawsuit, seeking 5 million yen (roughly $32,846) each, plus additional damages for late payments, and an injunction to halt Palworld’s release.

In November, Pocketpair acknowledged three Japan-based patents at the heart of the lawsuit, which relate to capturing creatures in a virtual environment. Palworld features a mechanic where players throw a Pal Sphere to capture creatures in a field, resembling a system in the 2022 Nintendo Switch title Pokémon Legends: Arceus. Recently, Pocketpair altered how players summon Pals, with speculation tying the change to the ongoing patent dispute.

Patent analysts suggest that the lawsuit from Nintendo and The Pokémon Company underscores Palworld’s competitive threat. The industry is closely watching the case to see if it will be resolved or fought out in court. Pocketpair remains defiant, stating: “We will continue to defend our stance in this matter through future legal actions.”

Amid the legal battle, Pocketpair has rolled out significant updates for Palworld and pursued collaborations, including a crossover with Terraria.