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 significant leadership change. 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 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 significant challenges. Widespread layoffs represent a major setback. Revenue from existing games has declined, with even the highly anticipated One Punch Man: World underperforming in international beta testing. The game has remained stagnant since April, with no updates on the App Store or Google Play.

Perfect World anticipates substantial 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 previous 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 from 150 employees to a mere dozen.

Despite these difficulties, the upcoming update for Tower of Fantasy, Hotta Studio's open-world gacha RPG, offers a glimmer of hope for a turnaround. Version 4.2, launching August 6, 2024, is anticipated to reinvigorate player interest and potentially improve financial performance.

The newly announced game, Neverness to Everness, has generated considerable pre-registration interest, with nearly three million pre-registrations globally within a week. While revenue generation is not expected until at least 2025, this early enthusiasm suggests strong potential.

The success of Perfect World's restructuring under new leadership remains to be seen. The coming months will be crucial as the company focuses on key initiatives, streamlines operations, and aims to recover financially.

For more gaming news, see our other article on Wang Yue, the open-world ARPG nearing its testing phase.