Perfect World Names New CEO Amidst Organizational Changes

Perfect World, the Chinese gaming giant behind titles like Persona 5: The Phantom X and One Punch Man: World, is undergoing significant leadership changes. 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 WeChat. However, reports suggest they will remain on the board as directors.

Gu Liming, a long-serving senior vice president, has assumed the CEO role. This transition signals a strategic shift for Perfect World, aiming for a company-wide revitalization. The new leadership's strategies will be closely watched.

Perfect World's Challenges

The company's recent struggles include widespread layoffs 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 substantial financial losses in the first half of 2024, projecting a net loss of 160-200 million yuan, a sharp contrast to last year's 379 million yuan profit. The gaming division will 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.

Despite these difficulties, there's potential for recovery. Hotta Studio's Tower of Fantasy, with its upcoming 4.2 update on August 6th, 2024, may provide a much-needed boost. Additionally, the newly announced game, Neverness to Everness, has generated considerable pre-registration interest—nearly three million globally within a week—suggesting strong player anticipation for this urban-themed open-world RPG slated for a 2025 release (at the earliest).

The success of Perfect World's turnaround hinges on its new management team's ability to navigate these challenges. The coming months will be crucial as they implement strategic initiatives, streamline operations, and aim to restore profitability.

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