Perfect World Appoints New Leadership Amid Executive Departures

Perfect World, the Chinese gaming behemoth behind titles like Persona 5: The Phantom X and One Punch Man: World, is experiencing a significant leadership transition. 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 on the board as directors.

Veteran Perfect World executive Gu Liming, formerly Senior Vice President, assumes the CEO role. This change 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 performance has been marked by significant setbacks. Extensive layoffs represent a considerable blow, coupled with declining revenue from existing game titles. Even One Punch Man: World, initially anticipated as a major success, underperformed in international beta testing and has remained stagnant since April, with no updates on the App Store or Google Play.

Perfect World anticipates a substantial financial loss 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 this loss, with a projected net loss of 140-180 million yuan. Further compounding the situation, the middle office team has been drastically reduced from 150 employees to a mere dozen.

Despite the challenges, there are glimmers of hope. The upcoming update for Tower of Fantasy, Hotta Studio's open-world gacha RPG, promises a potential turnaround. Version 4.2, launching August 6, 2024, is expected to reinvigorate player interest and potentially improve financial performance.

Additionally, the newly announced title, Neverness to Everness, has generated considerable pre-registration numbers – nearly three million worldwide within a week. While revenue generation is not anticipated until at least 2025, this early interest is encouraging.

Perfect World's future hinges on the new management team's ability to navigate the company through its current difficulties. The coming months will be crucial as they implement key strategies, streamline operations, and aim to restore profitability. For more gaming news, see our other article covering Wang Yue, the open-world ARPG nearing its testing phase.