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 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 strategic shift for Perfect World, aiming for a company-wide reset and a fresh direction. The new CEO's strategies will be closely watched.

Perfect World Faces Headwinds

The company's recent struggles include substantial job cuts 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, a stark contrast to last year's 379 million yuan profit. The gaming division is expected to bear the brunt of this, with a projected net loss of 140-180 million yuan. Further compounding the situation, the middle office team has been drastically reduced.

Despite these challenges, there's a glimmer 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 6th, 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 interest. While not expected to launch until at least 2025, the nearly three million pre-registrations in a single week demonstrate significant early anticipation for this urban-themed open-world RPG.

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 restore its financial stability.

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