Totes serious.
A trio of sheep-like creatures using emplaced machine guns.

The "Pokemon with guns" game, Palworld, is very much not a scam. At least, that's what the game's development studio, Pocketpair, are making very clear to fans.

A fair number of people have gotten the idea that Palworld is a fake game, or even just some sort of a meme game. It's not particularly clear why people have jumped to this conclusion. Perhaps it's because the idea of cute animals wielding modern human firearms is a bit too wild. Perhaps people are overly cautious following the scam that was The Day Before. Whatever it is, people are hesitant to believe Palworld is what it says it is.

The devs have certainly taken notice of this doubt, as they included a portion in their Early Access Launch FAQ that specifically addresses the claims that the game is a scam.

Is this game a scam? Or is it a money-making MMO or virtual currency game?

It is not a scam and will definitely be released on January 19th. PalWorld is a typical Steam game, you buy it once and it is yours forever. While we may consider expansions after the full release, that is a conversation we will all have together, as a community, when the time comes!​
I feel like the fact that Palworld is coming to Xbox Game Pass should've been a clear indicator that the game isn't a scam. After all, why would Microsoft spend money on something that is a scam?

There are some other interesting tidbits of information contained in that Early Access FAQ though. For instance, while there are no plans for a PlayStation 5 release right now, that may change in the future. The studio also says that they are working on supporting crossplay between Xbox and PC "as soon as possible." Other plans include adding Steam Workshop support later, they will be adding new Pals and areas during and after the Early Access period, and PvP is currently in an internal testing phase to see what does and does not work.