Perfect World Appoints New CEO Amidst Restructuring

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 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 layoffs represent a considerable setback. Revenue from existing games has declined, and even the highly anticipated One Punch Man: World underperformed 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 profit of 379 million yuan 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 significantly reduced.

Despite these difficulties, there's potential for a turnaround. The upcoming update for Tower of Fantasy, Hotta Studio's open-world gacha RPG, aims to reinvigorate player engagement and potentially improve financial performance. Version 4.2 is scheduled for release on August 6, 2024.

Perfect World's newly announced game, Neverness to Everness, has generated considerable pre-registration interest. While revenue generation won't begin until its launch (no earlier than 2025), the nearly three million pre-registrations within a week indicate strong early anticipation for this urban-themed open-world RPG.

The success of Perfect World's new leadership in navigating these challenges remains to be seen. The coming months will be crucial as the company focuses on key initiatives, streamlines operations, and works towards financial recovery.

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