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The store page says it is, but I don't get why it's been trendy to call any RPG with more than 8 players in a room at once "massively" multiplayer.
TF2 defaults to 24 players per server and I don't think anybody considers that massively multiplayer
Oh. You can also date a limited selection of NPCs in Palia. Of which almost all of them seem to be somewhere between like 18 and 25 years of age and for whom all of them the writing is on par with a bad teen drama where every single person has some kind of damaged backstory.
I find it personally hilarious that a game in this genre has far less customization (in both cosmetics, the ability to earn them in-game, and character customization) than something like Diablo 4.
Then again, this is a studio that has proven itself to half-ass everything it does and has since alpha days. They call Palia an MMO, but it's barely co-op. There's no trade, just a subpar "request" system (trading is cheating, according to one of their devs). They say "play the way you want to play" but what they mean is 'play the way WE think you should want to play.' They've said the skills you choose (or don't) wouldn't impact progress... and then locked quests and relationships behind certain skills.
They try to sell themselves as a small indie studio with limited funds but that's not true, either. It does get a lot of players who believe them without confirmation to defend them like rabid badgers, though.