Pocketpair, the developer behind the global phenomenon Palworld, has announced its intention to offer significantly better publishing deals to independent game studios. Leveraging the immense financial success of its monster-collecting hit, the company aims to provide more equitable terms, contrasting sharply with traditional industry practices that often burden small teams, as reported by GamesIndustry.biz.
This strategic shift comes as a direct consequence of Palworld’s unprecedented commercial and critical acclaim, which saw it attract 25 million players within its first month across Steam and Xbox, including Game Pass subscribers. Previously, Pocketpair itself navigated the challenging landscape of game development with only moderate successes, understanding firsthand the struggles faced by emerging studios in securing viable funding and fair revenue splits.
The indie publishing sector has long been characterized by deals requiring developers to surrender substantial portions of their long-term revenue to publishers and investors, often for relatively modest upfront capital. This model can stifle innovation and sustainability for smaller teams, leaving them with little financial breathing room even after a game’s release.
Reshaping the publishing landscape for independent studios
John Buckley, Pocketpair’s head of communications and publishing, highlighted the company’s past struggles, stating, “We’ve shipped games that were moderately successful, which just about funded the next thing. We’re no stranger to suffering, and trying to get by by yourself.” This background informs their current approach to indie game publishing, which began in January 2025.
The company was reportedly shocked by the standard conditions offered to indie teams seeking funding. Buckley noted that small teams are “very used to just giving up all of their revenue for one year” in exchange for relatively small investments. This realization spurred Pocketpair to utilize its newfound financial stability to create a more developer-friendly environment.
Their model focuses on offering “much fairer deals that let these developers survive from sale one onwards,” rather than recovering costs only after tens of thousands of sales. This approach could significantly alter the financial viability for small developers, allowing them to retain more control and profit from their creations from the outset. For a deeper dive into sustainable game development, see this analysis on fair game publishing deals.
Palworld’s impact and future opportunities for indie developers
The monumental success of Palworld, which launched in January 2024, provided Pocketpair with the financial leverage to pursue this philanthropic publishing model. The game’s rapid ascent, despite a legal challenge from The Pokémon Company regarding alleged similarities, underscored its mass appeal and revenue-generating potential.
This financial independence means Pocketpair is “not wanting for anything at the moment,” as Buckley put it, allowing them to prioritize developer welfare over aggressive revenue acquisition. This shift could inspire other successful studios to adopt similar models, fostering a more sustainable ecosystem for independent creators in the long run. The broader economic impact of successful indie games is also explored in this report by the IGDA.
By focusing on fair revenue shares, Pocketpair aims to empower indie developers to maintain creative control and financial stability, fostering innovation without the crushing burden of traditional publishing agreements. This could lead to a new era where indie games thrive not just creatively, but also commercially, thanks to more equitable partnerships.
Pocketpair’s initiative marks a potential turning point for independent game development funding. By leveraging Palworld’s success to offer transparent and developer-friendly publishing terms, the company is setting a new precedent. This move not only supports the immediate needs of small studios but also champions a more sustainable and equitable future for the entire indie game ecosystem, potentially inspiring a much-needed reevaluation of industry-standard publishing practices.
