Summary
Palworldprovides the option to create personal servers, allowing players to group up and experience the monster-taming and survival experience together. However,setting up a dedicatedPalworldserver has limitations, some of which can hinder the potential of the upcoming PvP arena update. With players able to go up against one another in the future, developer Pocket Pair must consider changes to the game’s multiplayer aspect.
On July 05, 2025, a trailer forPalworld’s upcoming PvP mode was released. It showed a coliseum-like structure where players and their team of Pals can battle one another to see who is better among them. The future mode aims to improve the game’s multiplayer, introducing combat with human elements that allow for more engagement and consideration. Although the update will bring about major changes, the limiting factors of the game’s player-created servers may impact its implementation. The PvP mode will have to address those limitations if the developers want players to get the full experience.

The Limiting Factors the Pal Arena Update Must Overcome
Players have manyexpectations for thePalworldarena update, especially in regard to PvP. With the introduction of a mode that allows for player-against-player combat, the current multiplayer servers will need to see a few restrictions modified or removed entirely. The biggest limitations that the developers must address are the following:
These factors make it harder for players to enjoy the PvP mode with others on different platforms. Those who have dedicated their time to crafting powerful weapons and teams have fewer people to test them against, which could end up dissuading them from trying the new mode if no changes are made.
How the Arena Update Can Improve Palworld’s Multiplayer Issues
With both PC and Xbox players having different limitations to deal with, one way to help ensure they can at least enjoy the PvP mode is through an online battle queue. With the current server restrictions for both platforms, players cannot carry the progress on their main save file to another player’s world. If one were to join or host a server to allow for multiplayer, it would mean having to start over. An online battle queue would remove this issue by letting players enjoy the PvP mode with their full ability lineup while still being able to join the worlds of others. However, the developers have stated thatcreatingPalworldservers can be incredibly expensive, meaning that this kind of update would be hard to implement.
Another path to success is allowing for easier connections between PC and Xbox players and increasing the player limit. Due toPalworld’s current online multiplayer state, players can only enjoy the game with others on the same platform. Although PC players can crossplay with those on Xbox, those who have bought the game’s Steam version are restricted from doing so. Even if they are able to connect, those on Xbox are still limited to playing co-op with only 2–4 people. The Pal Arena update could allow Xbox players to create or host dedicated servers, removing the co-op limit and giving them more people to play with. Dedicated servers can also increase the 32-player restriction to a number that does not affect the overall gameplay of a player-created world. Although this will require aPalworldupdate to fix balance issues and bugsthat will come with such a change, the potential advantages may compel the developers to implement it.
Palworldadding a PvP arenais what the game needs to enhance its multiplayer aspect, but with the many restrictions multiplayer currently has, Pocket Pair will have to consider how to go about lifting them so that the new player-against-player mode is a hit from the start. If criticism from players is kept in mind, the PvP arena can attract competitive players into trying the game and give current players more reason to continue playing.
Palworld
WHERE TO PLAY
In this game, you can peacefully live alongside mysterious creatures known as Pals or risk your life to drive off a ruthless poaching syndicate. Pals can be used to fight and breed, or they can be made to work on farms or factories. You can even sell them or eat them.Survival: In a harsh environment where food is scarce and vicious poachers roam, danger waits around every corner. To survive, you must tread carefully and make difficult choices…even if that means eating your own Pals when the time comes.Mounts & Exploration: Pals can be mounted to traverse the land, sea and sky—allowing you to traverse all kinds of environment as you explore the world.Collect all kinds of exciting Pals to fight, farm, build, and work for you in this completely new multiplayer, open world survival and crafting game!