Japan-based developer Pocketpair has partnered with Sony Group Corp.'s (NYSE:SONY) Sony Music Entertainment and Aniplex to create a new business venture named Palworld Entertainment.

According to IGN, this joint venture aims to accelerate the global expansion of the Palworld intellectual property (IP) across various media formats.

Expanding Beyond Gaming

Unlike typical publishing deals or acquisitions, this collaboration focuses on leveraging Palworld's popularity beyond the realm of video games.

The new enterprise, led by Pocketpair CEO Takuro Mizobe, will oversee global licensing and merchandising activities associated with Palworld. This includes non-video game products such as merchandise and music, tapping into the game's growing fan base and creating new revenue streams.

"Palworld Entertainment will allow us to explore new opportunities and bring the world of Palworld to a wider audience," said Mizobe. "We're excited to work with Sony Music Entertainment and Aniplex to achieve this goal."

Record-Breaking Success

Palworld, often described as 'Pokémon with guns', is a survival and crafting game that has taken the gaming community by storm. Since its early access launch on PC and Xbox in January, the game has attracted over 25 million players in just one month. Palworld also became the largest third-party Game Pass launch to date and sold an impressive 15 million copies on Steam.

Despite its massive success, the game's development was relatively cost-effective. Mizobe revealed that Palworld's production cost was under ¥1 billion (approximately $6.7 million), yet it has generated tens of billions of yen in profit, with ¥10 billion equating to around $67.2 million. "The profits were too big for a studio of our size to handle," Mizobe admitted.

Future Prospects

With the formation of Palworld Entertainment, Pocketpair has hinted at the possibility of bringing Palworld to PlayStation platforms.

This would mark a significant expansion of the game's reach and potentially introduce it to a new audience of console gamers. "Our partnership with Sony opens up exciting possibilities for the future of Palworld," Mizobe stated.

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Image courtesy of Pocketpair via Steam.