Perfect World Announces New CEO Following Layoffs And Resignations

Perfect World, the Chinese gaming giant behind 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 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 fresh start and a renewed direction. The new CEO's strategies will be closely watched.

Perfect World's Recent Challenges

The company's recent performance has been marked by substantial job cuts and 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 significant financial downturn in the first half of 2024, forecasting 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 to a few dozen employees.

Despite these difficulties, there are glimmers of hope. The upcoming update for Tower of Fantasy, Hotta Studio's open-world gacha RPG, could provide a much-needed boost. Version 4.2, launching August 6, 2024, is anticipated to reignite player interest and potentially improve financial performance.

Perfect World's newly announced game, Neverness to Everness, has generated considerable pre-registration numbers. While revenue generation is still some time away (launch is not expected until 2025 at the earliest), the nearly three million pre-registrations worldwide within a week indicate strong early interest in 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 aim to restore financial stability.

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