Since its viral early access release in January, Palworld has undergone significant evolution through various updates and additions, with the most notable being the Sakurajima update and the introduction of a chaotic and entertaining PvP arena.
However, Palworld still has substantial growth potential, and the direction PocketPair chooses to take will be crucial for the game’s future. In a recent interview with ASCII Japan, PocketPair’s CEO Takuro Mizobe discussed the game’s development.
When asked about the future roadmap for Palworld, Mizobe stated, “To be honest, things aren’t decided yet.” While it’s clear that PocketPair plans to expand the game with new maps, Pals, and raid bosses, Mizobe emphasized the importance of deciding between two key business models moving forward.
PocketPair is currently deciding whether to complete Palworld as a buy-to-play (B2P) game or transition it into a live-service model. “From a business standpoint, turning Palworld into a live-service game would extend its lifespan and provide more stable profitability. However, the game was not originally designed with that model in mind, so taking it in that direction would come with many challenges,” Mizobe explains.
One of the main hurdles is converting Palworld to a free-to-play (F2P) game, a common requirement for live-service models. “Most live-service games are F2P with monetization through skins, battle passes, and other paid content. Since Palworld was built as a B2P game, it’s difficult to rework it into a live-service title from the ground up,” Mizobe adds.
Mizobe cited PUBG and Fall Guys as successful examples of games that transitioned to a free-to-play model, compensating early buyers with valuable in-game items. However, the Palworld team is aware that making this shift isn’t straightforward. “Both games took several years to fully transition. While I understand that the live-service model is beneficial for business, it’s not an easy path,” Mizobe noted.
Beyond the technical challenges of adopting a live-service model, the developers are focused on what players truly want. “The most important thing is whether the players want it or not,” Mizobe emphasized.
Majority of players would likely agree that they don’t want Palworld to adopt a live-service approach, which could give the game an eventual expiration date. Fortunately, in a move that subverted expectations, PocketPair has announced that they will not be changing Palworld‘s business model, preserving its current structure and appeal.
Instead, the wildly successful indie title Palworld, which blends open-world survival crafting with the creature-collection appeal of Pokémon, will remain a buy-to-play (B2P) game and will not transition to a free-to-play (F2P) or games-as-a-service (GaaS) model.
The interview with ASCII Japan appears to have taken place a few months after Palworld‘s early access launch, though it was only published on September 11th.
In the interview, PocketPair confirmed they are still exploring how to deliver meaningful updates to the game and ensure its continued growth. However, they’ve made an internal decision to avoid a shift toward the F2P or GaaS model, acknowledging that Palworld was never designed with that approach in mind.
Given the game’s success, selling over 20 million copies worldwide, the developers recognize that such a change would alienate millions of players who purchased the game at or near full price in January, potentially leaving them feeling cheated if Palworld were to adopt a free-to-play model.
PocketPair remains open to generating revenue through cosmetic DLC and skins as a way to support ongoing development, especially with Palworld maintaining tens of thousands of concurrent players on Steam daily.
Introducing cosmetic microtransactions could become a highly profitable revenue stream for a game like Palworld, which is still in active development. However, I personally hate this approach, especially considering how Palworld has already exceeded expectations by selling millions of copies worldwide.
Instead of focusing on post-release monetization, PocketPair has already been financially rewarded, and their priority should be on fully developing and refining the game. Otherwise, they risk falling into stagnation, as seen with titles like Valheim, 7 Days to Die, and ARK, which have struggled to maintain momentum with meaningful updates.
In the same interview with ASCII Japan, PocketPair’s CEO Takuro Mizobe also discussed his thoughts on the indie gaming landscape, sharing insights on what he believes will be the key factors driving future breakout successes in the indie scene.
Western media outlet IGN previously attempted to misrepresent PocketPair CEO’s views on similar games to Palworld, implying that the company was criticizing the influx of indie developers trying to profit from the gaming industry’s challenges by creating similar titles.
The article suggested that PocketPair was lamenting the rise of indie games chasing trends, particularly in the popular genres of open-world survival crafting and action RPGs. However, this distortion of the CEO’s comments painted an inaccurate picture of the company’s stance.
In the ASCII Japan interview, Takuro Mizobe expressed his belief that the indie game scene will continue to expand significantly over the next 5 to 10 years, with more major indie successes on par with Palworld likely emerging. We’ve already had a taste of this with Game Science’s Black Myth: Wukong.
However, the game faced criticism from journalists, with claims that its Chinese developers were sexist. These accusations coincided with reports that Sweet Baby Inc. allegedly tried to extort $7 million from the developers, offering curatorial guidance to make the game more progressive, “woke,” and sanitized.
When China supposedly declined Kim Belair’s offer, IGN allegedly launched a campaign accusing the developers of sexism and the rest was history.
One of the main factors that will determine future hits, according to PocketPair’s CEO, is indie developers doing things that big companies cannot or will not.
“The indie market is comprised of various genres. If we take a look at Steam, there are 48 categories in total. Some of the bigger ones in there are the Survival Craft genre, and the Roguelike and Roguelite genres. The Metroidvania genre is gaining momentum too.
Among such indie genres, many are too low return for big companies to dabble in, making them unlikely to produce such games. The survival craft genre, which PocketPair is currently working on, is hard for large companies to enter. I think indie studios will benefit from having a go at making games in genres like these.”
In other words, indie developers should focus on popular genres that big studios are overlooking. The open-world survival crafting genre, for example, has seen notable indie successes with titles like Valheim, ARK: Survival Evolved, and 7 Days to Die. While these games have achieved significant success, major developers and publishers seem hesitant to produce similar games.
This reluctance may stem from the current gaming landscape, which is dominated by live-service hero shooters, interactive cinematic experiences, and games that align with progressive and censored ESG ideologies.
Mizobe also highlighted another important factor: market analysis. He believes that indie games have become more commercialized, with many developers no longer creating games based solely on personal passion. Instead, they are increasingly analyzing market trends to determine what kinds of games are likely to sell.
Despite the gaming industry’s push for globalization and inclusivity, the majority of gamers are still male, heterosexual men in fact. Big-name developers are heavily focused on inclusivity and DEI initiatives, often resulting in female characters with hideously ugly designs with a push towards progressive same-sex relationships, which undermine the appeal.
This focus on inclusivity and censorship has led to a lack of fun and authenticity in modern game design. Meanwhile, smaller Asian developers are capitalizing on this gap with live-service gacha games that attract players with appealing characters.
Upcoming titles like Azur Promilia and Project Mugen are eagerly anticipated as they build on the successful ARPG formula pioneered by miHoYo’s Genshin Impact, which has generated billions in revenue.
Players seem willing to engage with free-to-play models despite potential monetization concerns, as competition has diminished and even major Japanese developers have embraced the trends of diversity, inclusivity, and equity.
In a way, we are like that too,” Mizobe says about PocketPair. “We want as many people as possible to play our games, so we analyze the market and base our game development on that.” He forecasts that the indie scene will see a rise in commercially savvy developers who excel at market analysis, giving consumers what they want.
“If this results in games that align with players’ desires, I think it’s a positive development.” As a smaller company, PocketPair and Palworld were able to take risks and innovate without the constraints that often limit larger developers. By blending popular game genres, they created a global sensation that was well-received by players.
