"PocketPair's Best Bet: Palworld's Live Service Model"

In an insightful interview with ASCII Japan, Palworld CEO Takuro Mizobe shared his thoughts on the future trajectory of the popular creature-catcher shooter game, Palworld. The discussion centered around the potential shift to a live service model and the expectations of the game's fanbase.

Pocketpair CEO Weighs in on Turning Palworld Into a Live Service Game

It's Good for Business, but Definitely Challenging

During the interview, Mizobe addressed the pivotal question about Palworld's future: should it transition into a live service game? He clarified that no definitive decisions have been made yet. "Of course, we will update [Palworld] with new content," Mizobe stated, confirming plans to introduce a new map, additional Pals, and raid bosses to keep the game engaging. "But for the future of Palworld, we are looking at two options," he added.

Mizobe elaborated on the two paths under consideration: maintaining Palworld as a complete, buy-to-play (B2P) game, or transforming it into a live service game, often referred to as LiveOps. In the B2P model, players purchase the game once to access the full content, whereas live service games rely on continuous monetization through ongoing content releases.

"From a business perspective, turning Palworld into a live service game would provide more opportunities for profit and help extend the lifespan of the game itself," Mizobe acknowledged. However, he also pointed out the challenges involved, given that Palworld was not originally designed with a live service model in mind. "So it would certainly be challenging if we were to take that route."

A critical consideration for Pocketpair is gauging the appeal of a live service model to Palworld's fanbase. "And the most important thing is [determining] whether the players want it or not," Mizobe emphasized. He noted the typical transition from a free-to-play (F2P) model to live service, where additional paid content like skins and battle passes can be added. "But Palworld is a one-time purchase game (B2P), so it is difficult to turn it into a live service game," he explained.

Mizobe cited successful transitions to F2P models by games like PUBG and Fall Guys, but stressed the complexity of such shifts. "While I understand that the live service model is good for business, it’s not that simple."

Currently, Pocketpair is exploring various strategies to increase engagement and attract new players while keeping the existing community satisfied. Mizobe also touched on the possibility of ad monetization, stating, "We also are advised on implementing ad monetization, but the basic premise is that ad monetization is difficult to adapt, unless it's a mobile game." He added that he couldn't think of successful examples of ad monetization in PC games and noted the strong aversion of Steam players to in-game ads. "Even if it were to work well for a PC game, people who play on Steam would hate the ads. There are a lot of users who get angry when ads are inserted."

Concluding the interview, Mizobe said, "So, for now, we are carefully deliberating what direction Palworld should take." Palworld remains in its early access phase, with the recent launch of the Sakurajima update and the introduction of the much-anticipated PvP arena mode.