Nintendo’s legal battle with Palworld is ongoing, and the company recently reported significant losses related to lawsuits during the past year – totaling tens of millions of dollars. However, it’s possible these expenses aren’t directly connected to the Palworld case, which Nintendo is still working through.
In September 2024, Nintendo and The Pokémon Company sued Pocketpair, claiming their game Palworld copied patented technology. The lawsuit, filed in a Tokyo court, focused on how Palworld lets players switch between creatures they’ve captured and ride, and the companies are asking the court for financial compensation and an order to stop the alleged infringement.
Nintendo Reports Over $40 Million in Litigation Losses for FY 2026
Nintendo’s costs for the lawsuit against Palworld are adding up. A recent financial report shows the company spent roughly $41 million on legal battles in the past year (ending March 2026). This figure represents the vast majority – almost 96% – of the company’s unexpected losses for the year. The remaining losses, around $1.7 million, were due to selling off old assets like office equipment and buildings. Nintendo hasn’t detailed exactly how much of the $41 million was specifically related to the Palworld case.
Considering the bigger picture, Nintendo continuing to pursue its lawsuit against Palworld indicates that this case probably isn’t the primary reason for the recently reported $41 million in legal losses. Since the loss is specifically categorized as a result of litigation, it likely stems from a settlement, licensing deal, or similar agreement – rather than the regular costs of a lawsuit Nintendo initiated.
Nintendo’s FY 2026 Litigation Losses Possibly Stem from Recent Settlement Over Former BlackBerry Patents
A likely reason for Nintendo’s increased legal costs is the recent settlement of a patent lawsuit with Malikie and Key Patent Innovations. This case, filed in September 2024, involved claims that the Nintendo Switch infringed on patents originally held by BlackBerry. The lawsuit was resolved confidentially during Nintendo’s last fiscal year, and related reviews of the patents were later cancelled. Because Nintendo was defending itself in this case, and the settlement details haven’t been made public, it’s a more probable cause for the new expenses than the ongoing legal matter involving the game Palworld or recent lawsuits Nintendo has initiated itself.
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As a big fan, I’ve been following the lawsuit between Nintendo and Pocketpair over Palworld, and it’s still ongoing! As of September 2025, their lawyers were still battling it out. Pocketpair is fighting back on two fronts – they’re saying they didn’t copy anything and that Nintendo’s patents aren’t valid in the first place. It’s a risky move for Nintendo, because if they lose, the court could end up throwing out those patents or seriously limiting what they cover. As of May 2026, there’s still no word on whether they’re trying to settle out of court or if it’s actually headed to trial, which is pretty frustrating for those of us watching!
Sources: Games Fray
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2026-05-08 22:04