Curiously, Nintendo’s lawyers decided not to intervene despite the scheduled release of Palworld merchandise this week.
Sony and Pocketpair join forces to create Palworld Entertainment
In an unexpected alliance, Pocketpair, the game developer and publisher behind Xbox Game Pass hit Palworld, announced its new collaboration with Sony Music Entertainment on Wednesday. Together, they created a new entity called Palworld Entertainment, Inc.
Developing Palworld on multiple fronts
The goal of this joint venture, in their own words, is to “accelerate Palworld’s multifaceted global development and expansion.” Behind this corporate language, it is the idea of derivative assets that is implicitly expressed.
The new partnership includes Sony Music Entertainment, Inc. and game and animation publisher Aniplex, Inc., both subsidiaries of Sony Corporation. Pocketpair reports that Palworld merchandise will soon be available for pre-order on Aniplex Online.
Expanding the reach of the Palworld IP
The new entity Palworld Entertainment, Inc. will manage Palworld’s commercial license. Their mission, according to their website, is to support “various national and international licensing operations for Pocketpair’s Palworld game,” with the ultimate goal of “accelerating Palworld’s multifaceted development and further expanding the IP.”
To be clear: the ultimate goal of this approach is to exploit the commercial potential of this IP, there will be potential to capitalize.
A story of success and irony
When Palworld launched in January in Early Access, many in the video game industry bet that Nintendo would lead it into oblivion by suing it. The game, which resembles Pokémon, was a resounding success with more than a million copies sold in eight hours and more than 25 million players in its first month.
Finally, The Pokémon Company has not (yet) taken legal action. Perhaps the most ironic part of the story is that The Pokémon Company was founded as a similar joint venture between Nintendo, Game Freak, and Creatures in 1998. As we often say, well done Sony.
Palworld Entertainment will begin its new licensing campaign with a series of “exclusive game-based merchandise.” These new products will be showcased for the first time at the Bilibili World 2024 trade show in Shanghai, China, which kicks off in two days.
