In its current report sharing its financial data for the 2026 fiscal year, Nintendo revealed data that had a wide impact in the gaming world. The Japanese gaming giant officially reported that it suffered a lawsuit loss of approximately $41 million in the past 12 months.

Especially as the recent Palworld tension with Pocketpair continues at full speed, the real reasons behind this huge financial blow are a matter of curiosity. Financial statements show that these losses account for almost all of the company’s total “extraordinary expenses.”

Huge Loss of 41 Million Dollars: What Do the Numbers Say?

According to Nintendo’s consolidated financial report published on May 8, 2026, the company suffered a serious financial loss due to legal processes in the 12-month period ending in March 2026.

Included in the report 6.414 billion yenThe expense item (approximately 41 million dollars) is directly called “litigation losses”. This proves that money leaves the safe not only for attorney fees or routine legal expenses, but also because of the loss of a case or an unfavorable settlement.

The remaining part of the extraordinary expenses reported by the company is the “disposal of fixed assets” item, ranging from office equipment to buildings. However, this disposal cost of $1.7 million is quite small compared to the litigation losses. While Nintendo doesn’t detail which writings account for this $41 million, the timeline offers some clues.

Palworld or BlackBerry?

Many people experience this loss directly. palworldEven though he thinks it is related to his case, the functioning of the legal processes points to a different point. Nintendo and The Pokemon Company filed a patent infringement lawsuit against Pocketpair in September 2024.

This lawsuit is based on the claim that the creature capture and mount changing mechanics in Palworld infringe Nintendo patents. However, this case has not yet been concluded and the court process continues. In legal terminology, the term “loss of litigation” generally represents a final decision or a settlement fee signed between the parties.

At this point we encounter blackberrypatents are issued. Nintendo was faced with a patent lawsuit filed by Malikie Innovations and Key Patent Innovations in late 2024.

This lawsuit, covering old BlackBerry patents, claimed that some technologies in the Switch family were used without permission. There are indications that this case will be concluded with a secret settlement in 2025. Although the terms of the settlement have not been made public, in terms of timing, it seems much more likely that the BlackBerry file is the main responsible for this $41 million loss.

New Front in the Patent Wars: Pocketpair Defense

While Nintendo is dealing with these huge costs, on the other hand, it continues its struggle on the Palworld front. Pocketpair lawyers have been following a very tough defense strategy since September 2025.

The company not only argues that it does not infringe the patents, but also challenges the validity of Nintendo’s patents in question.

If Pocketpair is successful in its appeal, Nintendo may not only lose the case; At the same time, it may face the risk of having some of its critical patents revoked or their definitions narrowed.

As of May 2026, it still remains a mystery when the case will be resolved or whether a settlement will be reached. But what is certain is that Nintendo’s “legal immunity” image is taking a serious financial hit with this year’s $41 million bill.