Monster-Collecting Survival Game Palworld’s Remarkable Success
The monster-collecting survival game Palworld has achieved a remarkable milestone, amassing an impressive 19 million players. This extraordinary success, however, comes with significant costs for its indie developer, Pocketpair. CEO Takuro Mizobe has revealed that the projected server costs for February are a staggering 70 million yen, which translates to over $475,000 USD. Despite the hefty price tag, Mizobe humorously contemplated the possibility of bankruptcy due to server fees.
“Wait, maybe we’ll go bankrupt from server fees?” joked Mizobe (machine translated from Japanese).
— Takuro Mizobe @TakuroMizobe.com (@urokuta_ja)
March 10, 2024
Financial Overview of Palworld’s Sales and Revenue
The financial success of Palworld is evident in its sales figures. The game has sold approximately 12 million copies on Steam, each priced at $30, resulting in a gross revenue of $360 million. After considering Steam’s cut, which is typically 30% but can drop to 20% after a certain threshold, the estimated revenue for Pocketpair would still be substantial. For simplicity, if we apply a flat 30% cut, the revenue after Steam’s share would be around $252 million before other expenses.
| Copies Sold on Steam | Gross Revenue | Estimated Revenue After Steam’s Cut |
|---|---|---|
| 12 million | $360 million | $252 million |
In addition to Steam sales, Xbox sales, including its inclusion in the Game Pass subscription service, have also contributed to Pocketpair’s financial stability and helped offset the significant server costs.
Server Costs and Management in Palworld
Palworld’s network engineer, Chujo Hiroto, has taken a proactive approach to server management, emphasizing the importance of maintaining service continuity at any cost. Following the directive to never let the service go down, the team at Pocketpair has prepared their servers without regard to the financial implications, ensuring that players can enjoy an uninterrupted gaming experience.
“Following the order to never let the service go down no matter what, we have prepared servers without regard to cost. We will continue to give our all to ensure that all players can enjoy to the fullest! $478,000…”
— Chujo Hiroto @ChujoHiroto.com (@chujohiroto)
March 10, 2024
Sustainability and Future Plans for Palworld
The sustainability of Palworld‘s business model is a topic of interest, especially considering the game currently contains no microtransactions. This is a departure from many online games that rely on a steady stream of income from premium cosmetics and seasonal offerings like battle passes to justify high upkeep and ongoing development costs. Palworld’s initial sales have been impressive, but the game is unlikely to maintain the pace of selling over 12 million copies each month.
Looking ahead, Pocketpair has plans to increase the co-op player limit within Palworld, which could potentially increase server costs. However, as the number of concurrent players stabilizes over time, it is expected that the server costs will also reduce, providing some financial relief. The balance between these factors will be crucial for the long-term financial health of the game and its developer.
Hosting Your Own Palworld Dedicated Servers
For players seeking a more personalized and expansive gaming experience, the option to host their own Palworld dedicated servers is available. These dedicated servers support up to 32 players, allowing for larger co-op play and community engagement. This feature not only enhances the gameplay for users but also helps to distribute the server load, potentially easing the financial burden on Pocketpair by leveraging player-hosted servers.
