Despite Legal Challenges, Palworld Reveals Mysterious 2025 Collaboration with Terraria

The legal clash between Nintendo, The Pokémon Company, and Palworld’s developer Pocketpair is starting to pick up steam. Despite the courtroom drama, Pocketpair isn’t slowing down on delivering fresh content for Palworld. Recently, they dropped a bombshell: a surprise team-up with Terraria set for 2025.

They broke the news on the game’s social media platforms, where they showcased a tantalizing piece of promotional art. While specifics about this crossover are still under wraps, it’s piqued our curiosity to say the least.

In addition to this exciting crossover news, there’s an update on the horizon. Palworld is expanding with a brand-new island filled with unique creatures and exciting challenges launching this December. According to the developers, it’s the “largest, harshest, and most mysterious” area yet. For context, this new territory is about six times larger than Palworld’s existing Sakurajima. They’ve released some jaw-dropping screenshots along with this announcement, which you can check out below.

In a recent Tweet, Palworld’s official account announced, “🚨 Major update coming in December!🚨 Survive on the largest, harshest, and most mysterious new island in Palworld!” Jam-packed with excitement, they added, “The size of the new island is about six times more than Sakurajima!!!” Plus, they sweetened the deal with a 25% discount on the game, making it the ideal time to get ready for the upcoming expansions!

Even though the buzz around Palworld has calmed since its peak earlier this year, the game is still drawing a crowd. With its Pokémon-inspired creatures and familiar gameplay mechanics, Palworld maintains an ‘Overwhelmingly Positive’ rating on Steam and enjoys a thriving player base on both Xbox and, more recently, PS5.

If Terraria indeed incorporates Palworld-themed content in 2025, it’ll be a notable addition to Re-Logic’s beloved game—particularly after they expressed a desire to step back from continuous updates to the iconic 2D crafting classic that hit the scene in 2011.

As for Palworld-related chatter, it turns out some fans recently expressed frustration over Palworld being overlooked by The Game Awards. The community manager weighed in, advising the community to keep calm. On a lighter note, we also learned today about a new Tencent-backed project allegedly taking cues from Horizon, raising eyebrows due to its sneaky similarities with Palworld—a nod to its complex history with Pokémon that many dub as a ‘source of inspiration.’