Perfect World Announces New CEO Following Layoffs And Resignations

Perfect World, the Chinese gaming giant behind successful 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 revised 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 considerable setback. Revenue from existing games has declined, and even One Punch Man: World, initially projected as a major success, underperformed in international beta testing. The game has remained strangely inactive, with no updates on the App Store or Google Play since April.

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 recorded 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 difficulties, the middle office team has been drastically reduced from 150 employees to a mere dozen. While the situation is undoubtedly challenging, the upcoming update for Tower of Fantasy offers a glimmer of hope for a turnaround. Hotta Studio's ambitious open-world gacha RPG, Tower of Fantasy, is slated to release Version 4.2 on August 6, 2024, potentially boosting both excitement and revenue.

The newly announced game, Neverness to Everness, has generated considerable pre-registration interest. Although its launch is not expected until 2025 at the earliest, the nearly three million pre-registrations worldwide within a week indicate strong player anticipation for Perfect World's new urban-themed open-world RPG.

The success of Perfect World's new leadership team in navigating these challenges remains to be seen. The coming months will be crucial as they implement key strategies, streamline operations, and strive to regain financial stability.

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