Perfect World Unveils New Leadership Amidst Changes

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 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 of 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 navigates recent challenges.

Perfect World Faces Headwinds

The company's recent performance has been marked by 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 significant 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 this loss, with a projected net loss of 140-180 million yuan. The middle office team has also seen drastic reductions in staff.

Despite these setbacks, there's a glimmer of hope. Hotta Studio's Tower of Fantasy, an open-world gacha RPG, is preparing a major update (Version 4.2, launching August 6th, 2024) that could potentially boost revenue. Furthermore, the newly announced game, Neverness to Everness, has already garnered nearly three million pre-registrations worldwide within a week of its announcement. While this title won't launch until at least 2025, the strong pre-registration numbers indicate significant player interest.

The success of Perfect World's turnaround hinges on the new management team's ability to execute its strategic initiatives, streamline operations, and ultimately restore profitability. The coming months will be crucial in determining the company's future.

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