Perfect World Announces New CEO Following Layoffs And Resignations

Perfect World, the Chinese gaming giant behind popular titles like Persona 5: The Phantom X and One Punch Man: World, is undergoing a major leadership change. Following significant 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 potential strategic shift for the company as it aims to recover from recent setbacks. The coming months will be crucial in observing the new leadership's strategies.

Perfect World's Recent Challenges:

The company's recent struggles are multifaceted. Widespread layoffs represent a considerable blow. Revenue from existing games has declined, and even the highly anticipated One Punch Man: World underperformed in international beta testing, remaining stagnant since April without 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 stark contrast to last year's 379 million yuan profit. 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 in size.

Despite these challenges, there are glimmers of hope. The upcoming version 4.2 update for Tower of Fantasy aims to revitalize the game and potentially improve its financial performance. Furthermore, the newly announced game, Neverness to Everness, has already garnered significant pre-registration numbers—nearly three million worldwide in just a week—indicating strong early interest in this new urban-themed open-world RPG. However, revenue generation from this title is not expected until at least 2025.

The success of Perfect World's turnaround hinges on the new management team's ability to navigate these challenges effectively. Their focus on key initiatives, workflow optimization, and financial recovery will determine the company's future trajectory.

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