Summary
WhenPalworldwas released earlier this year on Xbox and PC, it immediately became a breakout hit for independent Japanese developer Pocketpair. The game, jokingly referred to as “Pokemonwith guns,” became immensely popular in large part because of how it provided an irreverent spin on the tone of Game Freak’s iconic franchise. Placing lovable,Pokemon-like creatures in a harsh setting where guns, slavery, and black market trading are commonplace has proved to bea winning combination forPalworld.
The game wasn’t just a big success for Pocketpair, though; it was a notable release for Microsoft, as well. After all,Palworldwas launched not only as an Xbox console exclusive but also as a day-one Game Pass game. As Microsoft itself revealed, the game attracted a lot of attention on the Xbox platform and quickly rose up the ranks to becomethe biggest third-party Xbox Game Pass launch of all time. Surprising as it may be, Pocketpair’s indie hit ended up being one of the most successful PC games and Xbox console exclusives in recent memory despite the lack of a traditional marketing campaign. It’s a shame, then, that Microsoft hasn’t taken advantage of this golden opportunity to promote the Xbox brand withPalworld, especially when considering recent developments between Pocketpair and Sony.

Microsoft Fumbled the Bag By Not Entering Into a Partnership With Palworld Entertainment
On July 10, Pocketpair revealed that it was entering into a partnership with Sony Music Entertainment and Aniplex, Inc., a fellow Sony subsidiary, to establish Palworld Entertainment, a joint venture company created with the intent of expanding thePalworldIP into other mediums outside the video game market. There weren’t any specifics given as to what exactly would come out of this collaboration, but it’s possible that it might involve merchandising efforts, music videos, or evenvideo game adaptations. Now, whether thisleads to aPalworldmovie or anime being created remains to be seen, but it’s likely not out of the question.
Sony’s Collaboration With Palworld Was Surprising
The announcement thatPalworldwould collaborate with Sony came as a bit of a surprise to many fans of the game, because it meant Sony would be involved in the promotion of a title that isn’t currently available on PlayStation consoles. Although Pocketpair’s community manager has recently hinted at the existence of apotential PS5 port ofPalworld, it’s nonetheless strange in the eyes of some that the parent company of PlayStation would invest money into the cross-media expansion of a video game that’s still an Xbox console exclusive.
Pocketpair’s collaboration with Sony may not have anything to do with the company’s PlayStation division in particular, but it’s nonetheless a major missed opportunity for Xbox not to get involved with Palworld Entertainment first. Of course, Microsoft doesn’t have any music or film subsidiaries as Sony does, but it could’ve still co-founded Palworld Entertainment with Pocketpair and worked with external partners like Netflix or Amazon to bring the IP to other forms of media. Microsoft has already experienced massive success with similar ventures involving its first-party franchises, like thewidely-praisedFalloutTV show, so it would’ve made sense for the company to invest in comparable projects pertaining toPalworld.
The Now-Defunct Xbox Entertainment Studios Division Could’ve Made a Palworld Collab More Likely
One potential, albeit unlikely, way that Microsoft could have taken advantage ofPalworld’s transmedia push was by bringing back Xbox Entertainment Studios. For those unfamiliar with it, this internal branch of Microsoft Studios was dedicated to creating interactive film and television content for Xbox Live. It was created around the beginning of the Xbox One generation and lasted only two years, from 2012 to 2014. During this period, Microsoft was infamously lambasted for its push to make Xbox consoles all-in-one entertainment boxes, with the platform holder often prioritizing TV shows and movies in its messaging rather than video games. Because of all the backlash at the time, the console manufacturer walked back its multimedia plans, resulting inXbox Entertainment Studios getting shutteredbefore it was able to release anything substantial.
It may have been ill-conceived back then, but Xbox Entertainment Studios was somewhat ahead of its time, considering how much of a big deal cross-media promotion in the gaming industry is these days. If Microsoft were to revive its short-lived film and TV division, then it could have used the subsidiary in collaboration with Palworld Entertainment to producegreat movie and TV show adaptationsof Pocketpair’s wildly popular IP. Such a major initiative might have benefitted the company in multiple ways, as Xbox Entertainment Studios' revival would’ve also enabled Microsoft to develop cross-media initiatives for bothPalworldand its own IPs in-house without the need for third parties.
Xbox Could’ve Promoted Palworld Like Nintendo Promotes Pokemon
Regardless of how exactly it would’ve gone about doing it, if Microsoft did partner up with Palworld Entertainment, the console manufacturer would have had the opportunity to take a cut out of the profits of futurePalworld-related media ventures and treat the IP as an Xbox-adjacent property. For guidance, Xbox could’ve simply taken a look at what Nintendo does withthe belovedPokemonfranchise. Though the Japanese console manufacturer doesn’t have complete ownership over the aforementioned monster-catching series, as the property partially belongs to Game Freak and Creatures, it’s nonetheless managed to associate the IP with the Nintendo brand first and foremost. Indeed, Xbox could have been to Palworld Entertainment what Nintendo is to the Pokemon Company.
Microsoft Missed Out on an Opportunity to Grow Its Console Brand
Microsoft often seems to express the position that there isn’t much growth left in its section of the console market, which is why executives like Phil Spencer have said on multiple occasions thatthey aren’t too worried about Xbox Series X/S sales. However, when the console manufacturer misses out on major opportunities to expand the reach of the Xbox brand by failing to heavily promote exclusivegames likePalworld, it’s not hard for some to argue that the company simply isn’t doing enough to achieve this goal.
Palworld
WHERE TO PLAY
In this game, you may peacefully live alongside mysterious creatures known as Pals or risk your life to drive off a ruthless poaching syndicate. Pals can be used to fight and breed, or they can be made to work on farms or factories. You can even sell them or eat them.Survival: In a harsh environment where food is scarce and vicious poachers roam, danger waits around every corner. To survive, you must tread carefully and make difficult choices…even if that means eating your own Pals when the time comes.Mounts & Exploration: Pals can be mounted to traverse the land, sea and sky—allowing you to traverse all kinds of environment as you explore the world.Collect all kinds of exciting Pals to fight, farm, build, and work for you in this completely new multiplayer, open world survival and crafting game!