Palworld Entertainment, Inc. – the joint venture between Pocketpair, Inc., Sony Music Entertainment (Japan) Inc., and its group subsidiary Aniplex Inc., – is unveiling Palworld to potential licensing partners at this year’s Licensing Expo.
Aniplex, known for its expertise in licensing and merchandising blockbuster anime properties such as Demon Slayer: Kimetsu no Yaiba, is spearheading this aspect of the joint venture.
Now available in 69 countries and regions, Palworld is a multi-player open-world survival and crafting game created, produced, and published by Japanese video game developer Pocketpair, which became the breakout hit of 2024 when the total number of players surpassed 25 million after only one month in release. The game was created by Takuro Mizobe, who serves as the CEO of Pocketpair.
Palworld: Everywhere and In-Between
Palworld was originally launched on January 19, 2024, on PC (Steam), Xbox Series X/S, Xbox One, and through Xbox Game Pass. Within 5 days, it achieved over 7 million downloads and attracted more than 2 million concurrent players on Steam. On January 31, 2024, Microsoft reported that the game was the most-played 3rd party release on Xbox Game Pass – reaching a peak of almost 3 million daily active players on the Xbox platform.
Sony PlayStation launched the game on PlayStation 5 in September 2024, where it quickly landed in the top 10 in the U.S. and Europe and #1 in Japan. On March 4, 2025, the Mac version of Palworld was officially made available through Apple’s Mac App Store. Later that month, Pocketpair introduced a cross-play update, allowing players to embark on adventures together regardless of hardware – PC (Steam), Xbox, PS5, or Mac. Meanwhile, a landmark deal has been signed with KRAFTON, Inc., the powerhouse publisher behind PUBG, to develop a mobile adaptation of Palworld, with PUBG Studios spearheading the project. The variety of platforms and cross-play provides exceptional availability for Palworld.
The Distinctive Appeal of Palworld
The critically-acclaimed Palworld is a sprawling natural world that successfully blends different game genres – from monster-catching, training, and base-building to dynamic open-world adventure and survival. Players can engage in battles using everything from bows and spears to assault rifles and rocket launchers to capture Pals who, once caught, become powerful allies. Beyond combat, players build and manage bases, assigning Pals to automate tasks like farming, crafting, electricity generation, and more. There are more than 180 unique Pals, each endowed with unique personalities and traits to enhance the player’s adventure and help them to succeed.
But Palworld turns the traditionally wholesome creature-raising formula on its head with its satirical and sometimes darkly humorous twist. Players can also put their Pals to work in grueling labor, trade them for profit, or even consume them for survival! This unexpected contrast between the charming characters and ruthless efficiency makes Palworld unique and unforgettable, balancing satirical humor with high-stakes action.
Palworld Levels Up: New Content, Expansions, and more
Palworld’s momentum shows no signs of slowing down. As of February 19, 2025, the game had surpassed 32 million players across all platforms. Notably, Version 1.0 has yet to be released and is expected to attract even more players. With a compelling package of scheduled updates and high-profile collaborations on the horizon, the latter half of 2025 and the first half of 2026 are shaping up to be a game-changing period for the franchise.
Further fueling excitement, Palworld announced a crossover with Terraria, one of the best-selling games of all time with 58.7 million copies sold as of 2024. This collaboration will integrate elements from Terraria into Palworld, merging two beloved gaming worlds.
Other undertakings include limited-time, seasonal holiday skins, which are not only eye-catching but act to refresh designs and create a sense of urgency and exclusivity. Beyond their in-game appeal, these skins open the door to a variety of real-world merchandise opportunities.
With major expansions and high-profile partnerships on the horizon, Palworld players can expect an action-packed, content-rich year ahead.
Beyond the Game: Engaging Fans Everywhere
Fan demand has already led to successful direct merchandising efforts. The first Palworld products debuted at Bilibili World in July 2024, where attendees could purchase official plushies of fan-favorite Pals such as Cattiva, Chillet, and Depresso, at the Palworld booth. The event featured life-sized statues of iconic Pals, including Quivern and Chillet, providing immersive photo opportunities that brought the game’s world to life.
Mayumi Dean, Global Licensing Manager, Palworld Entertainment:
“Palworld’s phenomenal success has ignited global enthusiasm, driving an unprecedented demand for merchandise that brings its vibrant world to life. What’s fascinating is how the game resonates differently across regions. In China, fans connect with the work-centric Shachiku Pals, sparking a wave of workaholic memes. In the U.S., players are drawn to the game’s intense firepower and action, while across Europe and Australia, creativity shines through intricate base-building and architectural videos. It’s amazing to see how Palworld continues to capture the imagination of such diverse audiences!”
Exclusive merchandise has also been introduced at other major fan conventions. Limited-edition plush collectibles that debuted at the Tokyo Game Show in September 2024, followed by New York Comic Con in October 2024, sold-out allotments on each day.
Collector card sets and show exclusive accessories that launched in December 2024 at Comiket Japan, a manga event held at Tokyo Big Sight that is known to attract over 500,000 visitors, also proved incredibly popular with attendees.
Aniplex Originals
Continuing to meet fan demand, Aniplex regional headquarters including Aniplex Inc. in Japan, Aniplex of America Inc., and Aniplex (Shanghai) Ltd. each operate online storefronts that make exclusive products, often featuring exclusive artwork and illustration created by Palworld Entertainment.
Aniplex of America is excited to announce a new AOA Originals imprint and storefront, in partnership with Palworld Entertainment, where unique and exclusive designs will be available for select Palworld products.
Join the Palworld Phenomenon
At Licensing Expo, Palworld Entertainment, Inc. is engaging with potential partners across multiple product categories. Given Palworld’s diverse gameplay appeal, merchandising strategies are tailored to different categories and business segments.
Fans drawn to the game’s combat and survival mechanics will appreciate collectibles such as detailed action figures, gaming accessories, and streetwear featuring Palworld’s rebellious imagery and battle scenes. Fans enamored by Palworld’s charming Pals will enjoy plush toys, keychains, mini-figures, and lifestyle accessories like phone cases and stationery, while players who enjoy the base-building and crafting aspect of Palworld may be drawn to construction toys. Modular playsets and building kits inspired by in-game architecture—like windmills, farms, factories, and training facilities—will offer fans a hands-on way to bring their Palworld creations to life outside the screen.
As Palworld Entertainment continues to expand its reach, its first official style guide has been developed and will be available to all licensees and promotional partners. The style guide features key visuals, character assets (in 2D and 3D), patterns, icons, color callouts, backgrounds, composed graphics, packaging direction, and more.
In Fall 2024, Palworld was featured in the Amazon Ultimate Gaming Setup Festival at ZeroBase Shibuya, where players had the chance to experience the latest gaming accessories and participate in activities to win limited-edition items. The event included Twitch broadcasts featuring popular streamers with product recommendations and special playlists.
During the same timing, an official Palworld merchandise store was established on Amazon Japan that made official merchandise based on the popular video game available to fans in Japan, and in some cases, accessible to order outside of Japan.
Upcoming Plans and Projects
Looking ahead, GameStop and Palworld Entertainment have entered into a multi-year direct-to-retail partnership to produce a wide range of merchandise. The collaboration will include video game accessories, plush toys, apparel, home goods, as well as collectible cards and albums, with products launching this fall. Alex Jones, Director of Private Label at Geeknet, Inc. – the GameStop-owned brand behind the line – shared his excitement about the project: “We’re thrilled to bring the world of Palworld to life with a collection of fun, unique products for its rapidly growing fanbase.”
Another exciting program to mention is a collaboration with Makeship who specialize in creating collectible plushies known for detail that other companies aren’t able to easily achieve. Makeship will release 5–8 new limited-edition Pal plushies over several drops, giving fans even more ways to connect with their favorite creatures from the game. Each character comes with a reusable drawstring bag providing customers with a premium experience.
In the coming weeks, Palworld Entertainment will announce new toy partners which will launch figures, accessories, blind capsules, and more for multiple territories around the world that are certain to excite fans and collectors.
With its massive player base, strong community engagement, and innovative gameplay, Palworld is poised to become a licensing and merchandising powerhouse. As the game continues to evolve with new content and partnerships, its licensing and merchandising potential will only grow, making it one of the most exciting properties in the gaming industry today.
Read the article in our new Summer Issue, pages 18 – 22.
