As the title says: Yes, Battlerite Royale will be a standalone game, apart from the original Battlerite, which will be available for purchase on Steam in Early Access at the end of September.
They mentioned several reasons behind this transition:
First and foremost, a "new game mode" would have been limited by the "Team-Arena-Brawler" code, something which colided with the increasing potential they were able to envision with each passing day as they were developing it, so when they saw the huge response from the community, they decided to take it a step further and create a new game, while also preserving the quality of both experiences.
Almost like breaking shackles, they realized they could do much more in order to shape the best possible Royale experience – They redesigned champion ability kits, tweaked numbers, added and removed various gameplay systems, matchmaking, rating…
However, for those who have played the Arena, you'll be glad to know that the combat and input system has gone unchanged. Nevertheless, all champions have been tweaked for Royale, as their lethality needed to be increased while defensive cooldowns/healing/shields had to be weakened. It seems that support champions have been quite the challenge because of this.
In that order, some champions will remain much like they were in the Arena, while others will have brand-new abilities. More details will be revealed in future Dev's Updates.
For Battlerite Players
Although not much has been revealed as to what Royale mean for the rest of Arena players, they did say they are working on a FAQ and have unveiled a little of what we'll get in the upcoming game – All Battlerite players will receive rewards according to their time played, and will be able to use their "hard-earnt cosmetics". In that regard, those who bought the All-champions Pack, Early Access or the Ultimate Fan Pack will receive further rewards.
And Finally, hold on to your seats because this Monday August 13th they shall reveal the Roadmap of their plans for the rest of 2018 for both, Battlerite and Royale, and will also open the sign-ups for the Closed Beta!
Now, a personal opinion
I can't shake the feeling that this may be the last nail in the Team-Arena-Brawler's coffin. Up until now I always thought that, as a new game mode, it had a chance to invite people to try the main focus, that is to say, the Arena. In fact, it was the whole point of developing it at first, but as a separate entity entirely… it may just force them to re-direct all resources to the Royale. "Battlerite Royale will be released as a standalone game" may become Battlerite's epitaph.
Also, it doesn't specify but it seems that even those who paid for the Early Access/All-champions pack/Ultimate Fan Pack will have to also pay in order to play the Royale… which is not a very nice way to keep your loyal community happy, when all of them thought they'd be able to play it for free once available.
In any case, time shall tell.
And That's all! For more direct updates and screenshots you are welcome to visit the official blog