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 1,000 employees and disappointing 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 shift signals a strategic reset for Perfect World, aiming for a fresh direction. The company's future strategies under Gu Liming's leadership will be closely watched.

Perfect World's Recent Challenges

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 a significant financial loss in the first half of 2024, projecting a net loss of 160-200 million yuan, compared to a 379 million yuan profit in the same period last year. The game division is expected to bear the brunt of this loss, with a projected net loss of 140-180 million yuan. The middle office team has also been drastically reduced.

Despite these challenges, there are glimmers of hope. The upcoming update for Tower of Fantasy (version 4.2, launching August 6th, 2024) aims to reinvigorate the game and potentially boost revenue. Furthermore, the newly announced open-world RPG, Neverness to Everness, has already garnered nearly three million pre-registrations worldwide within a week, indicating significant player interest. However, this title isn't expected to launch until at least 2025.

The coming months will be crucial for Perfect World's new leadership as they implement revitalization strategies and strive to improve financial performance.

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