Perfect World Appoints New CEO Amidst Restructuring

Perfect World, the Chinese gaming giant behind titles like Persona 5: The Phantom X and One Punch Man: World, is undergoing a significant leadership change. Following substantial layoffs affecting over a thousand employees and underwhelming financial results, CEO Xiao Hong and co-CEO Lu Xiaoyin have resigned, according to a Game Gyroscope report on the Chinese WeChat platform. However, reports suggest they will remain on the board as directors.

Gu Liming, a long-serving Perfect World executive and former Senior Vice President, has assumed the role of CEO. This transition signals a strategic shift for the company, aiming for a revitalization and a renewed direction. The upcoming strategies under the new leadership will be closely watched.

Perfect World's Recent Challenges

The company's recent performance has been marked by significant setbacks. Widespread layoffs represent a major blow, coupled with declining revenue from existing games. Even One Punch Man: World, initially projected as a major success, underperformed in international beta testing and has remained strangely inactive on the App Store and Google Play since April.

Perfect World anticipates substantial financial losses in the first half of 2024, projecting a net loss of 160-200 million yuan, a stark contrast to last year's 379 million yuan profit. The gaming division is expected to bear the brunt of this loss, with a projected net loss of 140-180 million yuan. Further compounding the situation, the middle office team has been drastically reduced from 150 employees to a mere dozen.

Despite these challenges, there are glimmers of hope. The upcoming update for Tower of Fantasy, Hotta Studio's open-world gacha RPG, aims to reinvigorate the title and potentially improve its financial performance. Version 4.2 is scheduled for release on August 6, 2024.

Perfect World's newly announced game, Neverness to Everness, has generated considerable pre-registration numbers. While revenue generation is still some time away (a 2025 launch is the earliest expectation), the nearly three million pre-registrations worldwide within a week indicate strong player anticipation for this urban-themed open-world RPG.

The success of Perfect World's turnaround hinges on the new management team's ability to navigate these challenges. The coming months will be crucial as they implement key strategies, streamline operations, and strive to restore financial stability.

For more gaming news, see our coverage of Wang Yue, the open-world ARPG nearing its testing phase.