Perfect World Names New CEO After Shakeup

Perfect World, the Chinese gaming giant behind successful 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 disappointing financial results, CEO Xiao Hong and co-CEO Lu Xiaoyin have resigned, according to a Game Gyroscope report on the Chinese WeChat forum. 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 been appointed as the new CEO. This transition signals a strategic shift for the company, aiming for a fresh approach and renewed direction. The coming months will be crucial in observing the impact of this leadership change and the new strategies implemented.

Perfect World's Recent Challenges

The company's recent performance has been marked by significant challenges. Large-scale layoffs represent a substantial setback, 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 the App Store or Google Play.

Perfect World projects a substantial net loss of 160-200 million yuan for the first half of 2024, a stark contrast to the 379 million yuan profit reported last year. The gaming division is expected to bear the brunt of this loss, projecting a net loss of 140-180 million yuan. Further compounding the situation, the middle office team has been significantly reduced, shrinking from 150 employees to just a few dozen.

Despite these setbacks, there are glimmers of hope. The upcoming version 4.2 update for Tower of Fantasy, Hotta Studio's open-world gacha RPG, scheduled for August 6, 2024, is anticipated to generate renewed excitement and potentially alleviate some financial pressure. Furthermore, the newly announced game, Neverness to Everness, has already garnered significant pre-registration numbers—nearly three million worldwide within a week—suggesting strong early interest in this urban-themed open-world RPG slated for a 2025 launch (at the earliest).

The success of Perfect World's turnaround hinges on the effectiveness of its new management team. The coming months will be critical as they focus on key initiatives, streamline operations, and strive to restore financial stability.

For more gaming news, be sure to check out our other article on Wang Yue, the open-world ARPG, as it approaches its testing phase.