Palworld Publisher Rejects AI, Web3, and NFT Projects

Palworld developer and publisher Pocketpair has officially stated it will not release any games involving NFTs, Web3 technologies, or what it describes as "extensive AI integration," clarifying that the company "does not endorse these approaches."

In a conversation with Game Developer, John “Bucky” Buckley, Pocketpair’s communications director and publishing manager, commented: "Some may doubt my sincerity, but these are the straightforward facts. We simply don't support those technologies. If your project heavily relies on AI, Web3, or NFTs, numerous other publishers may be interested—but we are not the right fit."

"I expect that in the coming two to three years, we'll witness a strange influx—already starting to appear on platforms like Steam—of extremely poor-quality, AI-generated games," Buckley continued. "This has already affected other storefronts, although Steam has historically managed to filter them out. That's changing, though. As this trend grows, I believe we'll see a shift toward an 'authenticity market,' where players increasingly support developers who put genuine effort into creating unique experiences."

Pocketpair may be particularly sensitive to allegations regarding AI, especially since Palworld itself was accused of being 'AI-generated'—claims the studio strongly refutes and continues to address.

"It's not productive for me to engage directly with those making the AI accusations, as it only amplifies the controversy," Buckley noted. "For instance, one key piece of 'evidence' regarding translation was the absence of individual translator credits, which they took as proof of AI use. In reality, that’s just typical of Japanese corporate culture—localization is often credited to the company, not the individuals."

The integration of AI into game development remains deeply polarizing. For every supporter of the technology, there are vocal opponents. Earlier reports highlighted Silent Hill series producer Motoi Okamoto’s similar dismissal of AI, asserting it 'could never produce' a sequel like Silent Hill f. On the other hand, Dead Space creator Glen Schofield recently shared his vision to “revitalize” the industry partly through generative AI. Likewise, industry veteran and former Santa Monica Studio director Meghan Morgan Juinio remarked, “I believe failing to adopt AI limits our potential. AI is a tool that can enhance our creativity. For now, I see it as a supportive resource. It will continue to evolve regardless, so I aim to help guide its responsible use.”

Epic Games CEO Tim Sweeney anticipates that small teams will soon be able to use AI prompts to develop games on the scale of Nintendo’s acclaimed The Legend of Zelda: Breath of the Wild.

At the Game Developers Conference (GDC) in March, IGN interviewed Buckley about the numerous issues Palworld has encountered, including Nintendo's ongoing patent infringement lawsuit against the developer.