Tencent is aware of Palworld’s success, currently working on its own titles inspired by the sudden indie hit. The Chinese tech giant reportedly hopes that these efforts will help it accelerate the growth of its gaming business.

According to Bloomberg, Tencent currently works on at least two mobile games inspired by Palworld. They are in the making by Lightspeed Studios and TiMi Studio Group, in-house teams responsible for some of the company’s biggest international hits, PUBG Mobile and Call of Duty: Mobile.

These projects are said to feature crafting, open world, stylized violence, and pet companions. These are the elements presented in Palworld, and Tenent reportedly plans to make its own free-to-play versions with additional monetization.

Bloomberg noted that TiMi is now hiring specialists of all kinds, from Unreal Engine programmers to 3D artists, for a game set in a “fantasy adventure world with cute pets.” And Lightspeed has moved devs from existing titles, including its lackluster shooter High Energy Heroes, into its Palworld clone.

Launched in Early Access on January 19, Palworld has already reached over 25 million players globally, including 15 million units sold on Steam and 10 million users on Xbox. So it is not surprising that Tencent wants to use its vast resources to capitalize on the success of this formula invented by a much smaller indie studio.

The Chinese tech giant also recently made changes to its strategy by deprioritizing games based on licensed franchises in favor of its own IP. This is part of its plans to boost its video game revenues after a slowdown in the fourth quarter of FY23, when its International and Domestic Games segments declined by 1% and 3% year-over-year respectively.

As sources told Bloomberg, Tencent is now “incubating multiple, competing projects [inspired by Palworld] to breed the best results.” So there is a chance that only one of them will ultimately make it to a full launch. In the case it succeeds, the company could have a new hit in its portfolio without having to pay royalty fees to IP owners.

Got a story you'd like to share? Reach us at [email protected]