In the midst of Nintendo and The Pokemon Company’s ongoing lawsuit against Palworld for patent infringement, a surprising twist has emerged. A self-proclaimed designer of Palworld recently switched sides by admitting that the game includes copied content. In a series of emotional posts on her personal X (formerly Twitter) account, she described the inner turmoil and pain caused by the company’s actions, sparking a public uproar.

Earlier, on September 19, Nintendo published an official statement on its website, announcing a joint lawsuit with The Pokemon Company against Palworld developer Pocket Pair for patent infringement. The companies demanded that Pocket Pair stop infringing on their patents and pay damages.

On the same day, Pocket Pair responded through its official X account, claiming it had not yet received a lawsuit and was unaware of the specific infringement accusations. It stated it would follow legal procedures to address the matter.

Palworld, a game that features ark-building and pet-capturing mechanics, became a smash hit earlier this year, propelling Pocket Pair, previously an obscure company, into the public eye. According to Yicai, the game surpassed RMB 1 billion (USD 140 million) in sales within just four days of its release, setting a record of 2.1 million concurrent players—this, despite a development cost of less than RMB 50 million (USD 7 million).

Many players have noted that “every Pal looks oddly familiar,” but suspicions of plagiarism haven’t quelled the enthusiasm for this hit game despite its stitched-together appearance.

One of the more notable aspects of Palworld is its partnership with both Microsoft and Sony. In February, Pocket Pair reached a technical support agreement with Microsoft’s Xbox division. By July, Pocket Pair had teamed up with Sony Music Entertainment and Aniplex to form Palworld Entertainment, a joint venture aimed at expanding Palworld’s IP business and influence.

If Nintendo and The Pokemon Company win their lawsuit, the ramifications will not only affect Pocket Pair but could also extend to Microsoft and, in particular, Sony.

The Pokemon IP and similar games have long been one of Nintendo’s key strengths. With the big three—Sony, Nintendo, and Microsoft—locked in ongoing competition, Sony’s partnership with Palworld signals its ambition to gain a foothold in the Pokemon-like IP and gaming market.

Palworld has featured prominently at major domestic events like Bilibili World and ChinaJoy this past summer, with Sony playing a leading role in the game’s promotion. According to National Business Daily, gaming industry analyst Zhang Shule speculated that Nintendo’s legal action might be due to Palworld‘s potential release on Sony’s PlayStation 5.

Even during Palworld’s rise to fame, plagiarism accusations have continued to circulate. Even those unfamiliar with the game have commented on its art style’s similarities to Pokemon.

These factors combined seem to have prompted the joint legal action by Nintendo and The Pokemon Company.

In fact, as early as January—when Palworld was first released—The Pokemon Company issued a statement saying that Pocket Pair had no official IP licensing agreement and that appropriate measures would be taken after conducting an investigation into potential infringement.

By mid-September, just prior to the joint lawsuit, The Pokemon Company scored another legal victory. Its Shanghai toy subsidiary announced the result of a copyright infringement and unfair competition lawsuit against Pocket Monster Issue (also known domestically as Koudaiyaoguai Fuke). A court found the defendants to be jointly liable, ordering them to compensate RMB 107 million (USD 15 million) in damages.

Nintendo, known for its near-perfect record in copyright lawsuits, has earned the nickname “the strongest legal department in the Eastern Hemisphere,” thanks in part to its sweeping victory in early legal battles with Universal Pictures over the Donkey Kong trademark.

Now, with the designer’s public confession gaining traction, Pocket Pair appears to be in a precarious position.

Moreover, Palworld seems to be losing steam. According to SteamDB data, the game’s daily peak user count has dropped to around 30,000–40,000 players, a far cry from the millions it boasted earlier this year.

While the game is clearly in decline, it seems that players and netizens have simply moved on to other titles, as there hasn’t been a flood of negative reviews accusing it of plagiarism.

Baixiong (pseudonym), a dedicated fan of the Pokemon IP and a veteran player of its related games, stated bluntly that Palworld’s art style plagiarizes Pokemon, while its gameplay draws from other sources. However, he told 36Kr that “while plagiarism is wrong, this game is more fun than the official Pokemon titles.”

Meanwhile, fans voiced their support for Palworld under Pocket Pair’s response to the lawsuit, accusing Nintendo and The Pokemon Company of bullying smaller companies.

Although Pocket Pair seems likely to lose, some argue that The Pokemon Company has been slow to develop its IP. With outdated turn-based gameplay and rough artistic designs, its titles have failed to meet the expectations of many loyal Pokemon fans. In the end, what matters to players isn’t whether a game is a “Frankenstein” mix of others, but whether it’s fun to play.

If you had to decide, would you consider Palworld a good game?

KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by Lan Jie for 36Kr.