Despite the potential benefits of a live-service approach for extending the game's lifespan and enhancing profitability, CEO Takuro Mizobe highlighted the significant challenges involved in such a transition.

Palworld, often described as 'Pokemon with guns,' launched on Steam for $30 and quickly became a major hit, breaking records on platforms like Steam, Xbox, and Game Pass.

Since its launch, the game has generated significant revenue, reportedly at least $70 million, and remains among the top 100 most-played games on Steam despite a decline in player numbers.

In response to speculation about its future, Pocketpair has clarified that Palworld will not shift to a free-to-play model or a games-as-a-service approach, emphasizing that such discussions are not currently on the table.

The developers acknowledged that adapting Palworld to a free-to-play structure would require excessive work and does not align with the game's original design or player expectations.

Looking ahead, attention is now on the upcoming Tokyo Game Show, where a PS5 port of Palworld is expected to be announced.

Mizobe also referenced the risks associated with converting a premium game to a free-to-play model, citing examples of other games that took years to implement successful transitions.

Pocketpair has prioritized player feedback, noting that their community does not want a transition to a live-service model, which has been a concern among players.

While the game will continue to receive new content, including Pals and maps, no final decision has been made regarding its monetization model.

Future monetization strategies may involve premium downloadable content (DLC) and cosmetic skins, which the company is considering to support ongoing development.

As a buy-once title, Palworld intends to continue offering updates, raising questions about its long-term sustainability without a microtransaction model.

Pocketpair has apologized for any confusion regarding the game's future direction and aims to clarify their stance on maintaining the current business model.