Perfect World Names New Leader Amidst Shakeup

Perfect World, the Chinese gaming giant behind popular titles like Persona 5: The Phantom X and One Punch Man: World, is undergoing a significant leadership transition. 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 CEO role. This change signals a strategic shift for the company, aiming for a fresh start and a revised corporate direction. The new CEO's strategies will be crucial in determining the company's future trajectory.

Perfect World's Recent Challenges

The company's recent struggles include widespread job cuts, a decline in revenue from existing games, and disappointing international beta test results for One Punch Man: World. The latter title has seen a concerning lack of updates since April on both the App Store and Google Play.

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 the 379 million yuan profit achieved 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 significantly downsized.

Despite these setbacks, there are glimmers of hope. The upcoming update for Tower of Fantasy, Hotta Studio's open-world gacha RPG, is anticipated to boost performance. 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 the urban-themed open-world RPG. However, its projected 2025 launch means it won't contribute to immediate revenue generation.

The success of Perfect World's turnaround hinges on the new management team's ability to navigate these challenges. The coming months will be pivotal as they focus on strategic initiatives, operational efficiency, and financial recovery. For more gaming news, explore our coverage on Wang Yue, an open-world ARPG nearing its testing phase.