Perfect World Announces New CEO Following Layoffs And Resignations

Perfect World, the Chinese gaming giant behind popular titles like Persona 5: The Phantom X and One Punch Man: World, is undergoing significant leadership changes. 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 WeChat. However, reports suggest they will remain on the board as directors.

Gu Liming, a long-serving senior vice president, has been appointed as the new CEO. This transition signals a potential strategic shift for Perfect World as it navigates current challenges.

Perfect World's Recent Struggles

The company's recent performance has been marked by significant setbacks. Widespread layoffs represent a considerable blow, coupled with declining revenue from existing games. Even One Punch Man: World, initially anticipated as a major success, underperformed in international beta testing and has remained stagnant since April, with no updates on major app stores.

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 these losses, with a projected net loss of 140-180 million yuan. Further compounding the situation, the middle office team has been significantly downsized.

Despite these challenges, there's a glimmer 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 slated for release on August 6, 2024.

The newly announced game, Neverness to Everness, has generated considerable pre-registration numbers, amassing almost three million worldwide in just a week. While revenue generation won't begin until its 2025 launch (at the earliest), this early interest suggests strong potential.

The success of Perfect World's turnaround hinges on the new management team's ability to effectively address the company's challenges. The coming months will be crucial as they implement strategic initiatives, 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.