However, the one drawback for Palworld on Xbox is that it doesn’t support dedicated servers right now, which means that unlike the Steam version, you can’t join a server that contains up to 31 other players.
The reason for this was explained by Palworld Community Manager “Bucky” on Discord earlier in the week:
“Xbox only supports co-op mode. Xbox and Xbox PC can crossplay together though. We’d like to have dedicated servers on Xbox but unfortunately it’s not up to us and is quite difficult to negotiate at this time! But… we are trying!”
So, there you go – if you want to play Palworld on a dedicated server at launch, you’re going to have to invest in the Steam version. Fingers crossed this feature will find its way to Xbox eventually, but there are certainly no guarantees.