Gaming Giant Appoints New CEO amid Company Shakeup

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 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 strategic shift for the company, aiming for a revitalization and a new direction. The new CEO's strategies will be closely watched.

Perfect World's Challenges

The company's recent struggles include widespread layoffs, a decline in revenue from existing games, and the underperformance of One Punch Man: World, which despite high expectations, faltered in international beta testing. The game has remained stagnant since April, with no updates on the App Store or Google Play.

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. Further compounding the situation, the middle office team has been drastically reduced.

Despite the difficulties, there's potential for recovery. Hotta Studio's Tower of Fantasy, an open-world gacha RPG, is poised for a major update (Version 4.2 on August 6th, 2024), which could boost performance. Furthermore, the newly announced game, Neverness to Everness, has generated considerable pre-registration interest, with nearly three million pre-registrations worldwide within a week. However, this title isn't expected to launch until at least 2025.

The success of Perfect World's turnaround hinges on the new management team's ability to navigate these challenges. The coming months will be crucial as they focus on key initiatives, streamline operations, and aim to restore financial stability.

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