While Steam players can join dedicated servers to engage in online co-op play with 32 other Palworld players, Xbox players do not currently have that luxury.
While talking about this issue on the game’s official Discord server, the developers at Pocket Pair have acknowledged this limitation, stating:
“We’d like to have dedicated servers on Xbox but it’s unfortunately not up to us and is quite difficult to negotiate at this time!”
Pocket Pair Representative
The co-op mode on Xbox is limited to 4 players, thereby limiting the number of players that can inhabit the same world and make guilds. While Steam offers much more freedom in that sense, Xbox players currently have to make do with a short player list. This potentially limits their gameplay capabilities and hampers their experience of this open-world “Pokemon with guns”.
It is currently unclear what Pocket Pair means by saying the decision is not up to them. Many other games do have dedicated servers on Xbox consoles. Maybe Palworld Xbox console owners can finally play on larger dedicated servers when the full version of the game releases.
However, since the developer aims to release the full version over a year from now, Xbox players might have to make do with limited co-op player count for the time being.
