Krafton has acquired the license to optimise Palworld for mobile.
The company will now split resources between game development and legal proceedings.
New patches are tweaking gameplay, for compliance reasons.
Palworld features a wild mix of Pokemon, Fortnite, and gunplay that gets wackier with every trailer.
Palworld's player base has steadily declined since launch in January 2024.
Nintendo is seemingly watching the development of Palworld closely, particularly as players begin working on mods.
Palworld developer Pocketpair isn't worried about legal fallout from Nintendo.
Palworld has become a major smash hit, despite some players voicing concerns about its artwork and character designs.
Earlier in September, Pocketpair CEO Takuro Mizobe had speculated about the value of live service games.
Pocketpair is remaining cautious, despite the global success of Palworld.