Palworld is set to exit early access in 2026 while dealing with a continuing lawsuit from Nintendo

Pocketpair is working towards the release of Palworld 1.0 in 2026, amid ongoing litigation with Nintendo.

Through a YouTube video published on September 16, 2025, Bucky, who serves as the communications director and publishing manager, announced the company's intention to launch Palworld next year. They are preparing to offer "a truly massive amount of content" for this full release.

Bucky emphasized that substantial improvements are necessary before the game can transition out of early access.

He stated, "Palworld contains many peculiarities and imperfections that need attention before the release. We intend to start these enhancements this year."

Pocketpair is committed to resolving the existing issues to deliver a higher-quality game in the long run.

Consequently, the company plans a quieter year overall, aside from a smaller winter update, unlike the major Feybreak update in December 2024.

"We aim to keep things transparent regarding Palworld’s development pathway," Bucky added.

Bucky elaborated on the motivation behind launching Pocketpair Publishing in January, which is aimed at supporting interesting game projects within the industry. "Thanks to Palworld’s accomplishments, we can back other developers and explore new ventures," he said.

Rather than creating games, Pocketpair Publishing will support other developers through funding, marketing, and distribution, among other services.

The company has partnered with Surgent Studios to develop a new horror game scheduled for later this year.

Bucky hinted at additional projects underway, stating, "While Palworld is our main focus, we remain dedicated to nurturing innovation with smaller teams working on promising ideas."

The video did not elaborate on the legal dispute with Nintendo, which started in September 2024 when Nintendo and The Pokémon Company filed a lawsuit over perceived similarities between their games and Palworld.

Nintendo accused Pocketpair of violating several patents, including those filed after Palworld’s early access debut in January 2024. These patents relate to mechanics for using capture items, aiming systems, and rideable characters.

An analysis by MBHB associate Andrew Velzen suggested that the patents were crafted with Palworld in mind.

Another patent filed by Nintendo in September 2025 concerned "in-game characters summoning others to battle," a feature incorporated in Palworld.

In a response from November 2024, Pocketpair asserted their intent to defend their stance in the legal proceedings.