Palworld is set to exit early access in 2026, as it continues to face an ongoing lawsuit with Nintendo

The release of Palworld 1.0 is slated for 2026, even as Pocketpair contends with an ongoing lawsuit from Nintendo. In a YouTube update on September 16, 2025, Bucky, the communications director and publishing manager, stated that Pocketpair intends to launch a substantial amount of content for the game next year.

Bucky conveyed, "Before Palworld exits early access, significant refinements are necessary." Acknowledging the game's existing issues and peculiarities, Pocketpair is committed to addressing these thoroughly in the coming year.

The company aims to enhance the game by investing time in resolving these challenges. Consequently, Pocketpair will maintain a low profile for the remainder of this year, albeit planning a smaller winter update for Palworld than the extensive Feybreak update of December 2024.

Bucky commented on their transparency regarding Palworld's future development, revealing that Pocketpair Publishing was launched this past January to support the gaming industry. Through this venture, the company aims to provide aid—and share its success—with other developers via funding, marketing, distribution, and mentorship, and has partnered with Surgent Studios on a forthcoming horror project.

Emphasizing that Palworld remains their main focus, Bucky hinted at additional ongoing projects, maintaining several small teams to explore new ideas for future games.

No mention was made in the video about the lawsuit with Nintendo. Filed in September 2024, the lawsuit accuses Pocketpair of infringing several patents that resemble mechanisms in Pokémon games.

The allegations include claims on systems for virtual item capture and character riding, related to patents issued after Palworld's early release in 2024. Legal expert Andrew Velzen speculated these patents strategically target Palworld. In September 2025, another patent filed by Nintendo involves in-game character summoning, a feature utilized by Palworld.

Pocketpair has declared its intent to defend its stance through upcoming legal processes, reiterating this position in November 2024.