Perfect World Appoints New CEO Amidst Resignations, Layoffs

Perfect World, the Chinese gaming giant behind popular 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 disappointing 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 been appointed as the new CEO. This transition signals a potential strategic shift for the company as it aims to recover from recent setbacks.

Perfect World's Recent Challenges

The company's recent performance has been marked by significant challenges. Widespread layoffs represent a major blow, and revenue from existing games has declined. Even One Punch Man: World, initially anticipated as a major success, underperformed in international beta testing and has remained strangely inactive on app stores 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 reported 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 situation, the middle office team has been drastically reduced.

Despite these difficulties, there are glimmers of hope. The upcoming update for Tower of Fantasy, Hotta Studio's open-world gacha RPG, could provide a much-needed boost. Version 4.2, launching August 6th, 2024, is anticipated to generate renewed excitement and potentially improve financial performance.

Perfect World's newly announced game, Neverness to Everness, has already generated considerable buzz. While not expected to launch before 2025, the game's nearly three million pre-registrations within a week indicate strong early interest.

The success of Perfect World's turnaround hinges on the effectiveness of its new leadership. The coming months will be crucial as the company focuses on key initiatives, streamlines operations, and works to restore its financial position.

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