Why Sony Is Betting on ‘Palworld’ After the Early Hype

“Palworld” came seemingly out of nowhere to become one of 2024’s first hit video games. The media firestorm for the unofficially named “Pokémon With Guns” has since cooled, but a new partnership with Sony Music Entertainment (Japan) aims to fan the flames.

Last Wednesday saw the launch of Palworld Entertainment, a joint venture between the game’s indie developer Pocketpair and Sony Music Entertainment (Japan) Inc., along with its anime-focused subsidiary Aniplex. The company’s new website is still sparse, but it does state its mission of “accelerating the multifaceted development of ‘Palworld’ and further expanding the IP.”

Interestingly, SMEJ’s official press release doesn’t say if the new partnership means “Palworld” is coming to PlayStation, a move that might have seemed to be the first order of business for fans hearing the news. Instead, the priority will be jumpstarting “the global licensing and merchandising activities associated with ‘Palworld,’ outside of the interactive game.”

It seems like Palworld is once again borrowing some inspiration from Pokémon. The Pokémon Company was founded by Nintendo, Game Freak and Creatures Inc. in 1998 to handle the flood of licensing opportunities that came in following the success of the franchise’s early games.

And handle they did: With a portfolio including video games, trading cards, anime shows, films, manga and merch, Pokémon is currently the highest-grossing media franchise in the world. The Pokémon Company, according to License Global’s most recent Top Global Licensors Report, made $11.6 billion from licensing and merchandising in 2022 alone.

SMEJ likely sees the potential for “Palworld” to follow the pipeline from hit game to household name. And, with it having sold 15 million copies in its first six weeks, the first step has already been taken.

Of course, playership for “Palworld” has dropped off since the early hype. A month after the game hit a record-setting 2.1 million players on Steam, that number shrank to around 268,000 — a roughly 87% decrease. By May, numbers hovered between 20,000 and 30,000.

SEE ALSO: The Secret to ‘Palworld’ Success Is It’s Not Just ‘Pokémon With Guns’

Still, having players in the tens and hundreds of thousands several months after launch is impressive for a game many wrote off as a gimmick. And it’s worth noting that a significant number of players also came back for the updates. Steam player count more than doubled overnight following the game’s April 4 patch, while the major expansion in June jolted playership from around 31,000 to over 100,000.

The new partnership shows SMEJ thinks “Palworld” still has enough juice to expand the IP and the fanbase. They certainly have the personnel to do it. Despite its name, Sony Music Entertainment (Japan) has been the sole owner of the Aniplex since 2001, a company familiar with building franchises.

With a portfolio of anime classics including “Naruto,” “Demon Slayer: Kimetsu no Yaiba” and “Fullmetal Alchemist,” Aniplex has transformed its IP into shows, movies, games, merch and even musicals. It also runs anime-centric streaming platform Crunchyroll alongside Sony Pictures Entertainment.

All this is to say the future is bright for “Palworld” post-Pokémon With Guns hysteria. There is precedent for viral indie games making a killing on toy sales, and the game’s Pokémon-esque aesthetic unsurprisingly makes it prime for a show or movie.

That said, the Pokémon connection will be tough to shake as “Palworld” evolves as a brand, especially if its growth veers too close to Pokémon Company’s territory (and that’s not even mentioning the historic bad blood between Sony and Nintendo).

For now, we’ll have to wait and see how Palworld Entertainment’s plans unfold, whether it be with toys, shows or ports to the PS5 or — gasp! — the Nintendo Switch.