Palworld Won't Answer the Question 'What's Beyond AAA?'

Palworld's Unexpected Path: From Massive Success to Indie Focus

Pocketpair, the developer behind the wildly successful Palworld, has amassed significant profits—tens of billions of yen (tens of millions of USD)—that could easily fund a "beyond AAA" title. However, CEO Takuro Mizobe has revealed a different strategic direction for the studio.

Instead of scaling to a massive AAA studio, Pocketpair intends to remain focused on indie game development. Mizobe explained in a GameSpark interview that the company lacks the structure to handle a project of that magnitude, preferring to leverage their success to create smaller, more manageable, and engaging indie titles. This decision comes despite Palworld's immense financial success, built upon the foundation of their previous games, Craftopia and Overdungeon.

Mizobe highlighted the challenges of AAA game development, particularly the difficulty of creating a hit with a large team, contrasting it with the flourishing indie game scene, empowered by improved game engines and a more accessible global market. He emphasized Pocketpair's gratitude to the indie community, citing it as a key factor in their growth and expressing a desire to give back.

"We aren’t structured for something like that at all," Mizobe stated regarding a beyond-AAA project. The studio's strategy prioritizes creating "interesting indie games," exploring their potential within a smaller, more agile framework.

Looking ahead, Pocketpair is focusing on expanding the Palworld IP into various media. The early access game continues to receive significant updates, including a PvP arena and a new island in the recent Sakurajima update. Furthermore, the newly formed Palworld Entertainment, a collaboration with Sony, will oversee global licensing and merchandising. This diversification strategy underscores Pocketpair's commitment to building upon Palworld's success while remaining true to their indie roots.