Perfect World Announces New CEO Following Layoffs And Resignations

Chinese gaming giant Perfect World, known for titles like Persona 5: The Phantom X and One Punch Man: World, is undergoing a major leadership change. Following significant layoffs affecting over a thousand employees and disappointing 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 of directors.

Gu Liming, a long-serving senior vice president, has been appointed the new CEO. This transition signals a strategic shift for Perfect World, aiming for a company-wide reset and a new direction. The new CEO's strategies will be closely watched.

Perfect World's Challenges

The company's recent struggles include substantial layoffs and declining revenue from existing games. Even the highly anticipated One Punch Man: World underperformed in international beta testing and has remained stagnant since April, with no updates on major app stores.

Perfect World anticipates significant financial losses in the first half of 2024, projecting a net loss of 160-200 million yuan compared to a 379 million yuan profit in the same period last year. 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 drastically reduced.

Despite these setbacks, there's a glimmer of hope. Hotta Studio's Tower of Fantasy, with its upcoming 4.2 update on August 6th, 2024, aims to reinvigorate player interest and potentially improve financial performance. Additionally, the newly announced game, Neverness to Everness, has already garnered nearly three million pre-registrations worldwide within a week, indicating significant early interest in Perfect World's new urban-themed open-world RPG, though revenue generation is not expected until at least 2025.

The success of Perfect World's turnaround hinges on its new leadership's ability to navigate these challenges. The coming months will be crucial as the company focuses on key initiatives, streamlines operations, and aims to recover financially.

For more gaming news, read our other article on Wang Yue's open-world ARPG, currently nearing its testing phase.