Palworld earns four Steam Best of 2025 nominations, signaling momentum toward 1.0 release amid legal challenges

Pocketpair’s survival-crafting title collects four nominations and medals in Steam’s user-voted awards while eyeing a 2026 full release, even as a Nintendo lawsuit and ongoing bugfixes shape its pace.

Jan 7, 2026
Industry & Business
Palworld earns four Steam Best of 2025 nominations, signaling momentum toward 1.0 release amid legal challenges

Palworld, the survival-crafting title from Pocketpair, has earned four nominations in Steam's Best of 2025 Awards, including Silver medals for both Most Played and Most Played (Steam Deck) and Bronze for Top Seller and Controller game. The haul is notable for a game that is now two years old and still in early access, underscoring sustained player interest even as Hollow Knight: Silksong claimed the overall Best Game award.

Palworld awards atmosphere

Ahead of the holiday season, Pocketpair also signaled continued momentum toward Palworld 1.0, with the team indicating that a full release remains targeted for 2026 while work on the official launch accelerates this year. The developers marked the moment with a public post thanking the community, including the line, "Thank you so much, everyone... Not bad for a dead game!!" amid other notes about ongoing polish. In the meantime, the company has taken a brief step back from heavy community involvement to focus on bug cleanup and to prepare a significant slate of new content, echoing the approach taken with the substantial 2024 winter update that added a new island, new resources, and new mechanics.

However, the momentum comes with complications. Palworld remains in an ongoing copyright dispute with Nintendo, which alleges that certain mechanics imitate Pokémon. The dispute has tangibly influenced development decisions; last year the team patch changed a gliding mechanic so that players can no longer glide with Pals alone and must use a dedicated glider. The patch also introduced a new passive partner skill effect for Glider Pals during flight, while keeping the requirement to equip a glider for actual gliding.

Palworld’s communications director, Bucky, framed the current moment in aspirational terms: "Two years later and we're still humbled by our community's endless support and kindness. Thank you so, so, so much, Palworld games. Not bad for a dead game!!" The message captures a cautious optimism—recognizing both the fan base and the real-world obstacles that could influence release timing, content cadence, and long-term strategy.

From a business and industry perspective, the Steam Best of 2025 Awards continue to function as a barometer for fan engagement and publisher strategy, particularly for titles steeped in early access and ongoing development. Palworld’s four nominations and medals provide proof of strong community engagement that can translate into marketing and monetization opportunities even as developers navigate patch cycles, platform considerations, and a high-profile lawsuit. Pocketpair’s plan to push toward Palworld 1.0 in the near term, with a 2026 full release, suggests a dual-track strategy: iterate and expand in the near term, while managing legal risk and platform dynamics over the longer horizon. Observers will be watching not only for fresh content but for how the Nintendo case and any potential settlements or court rulings could reshape the game’s trajectory, including release timing, feature parity, and cross-platform deployment.

Sources