Perfect World, the Chinese gaming giant behind popular titles like Persona 5: The Phantom X and One Punch Man: World, is undergoing significant leadership changes. 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 assumed the role of CEO. This transition signals a strategic shift for the company, aiming for a fresh start and a renewed direction. The new CEO's strategies will be closely watched.
Perfect World's Recent Challenges
The company's recent struggles include widespread layoffs, a significant blow to its operations. Revenue from existing games has also declined. 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 substantial financial losses in the first half of 2024, projecting a net loss of 160-200 million yuan, compared to a profit of 379 million yuan the previous year. The gaming division will bear the brunt of this, facing a net loss of 140-180 million yuan.
Further compounding the situation, the middle office team has been drastically reduced from 150 employees to just a few dozen. While the situation is challenging, the upcoming update for Tower of Fantasy offers a glimmer of hope. Tower of Fantasy, Hotta Studio's ambitious open-world gacha RPG, has experienced financial volatility. Version 4.2, launching August 6, 2024, is expected to revitalize interest and potentially improve financial performance.
The newly announced game, Neverness to Everness, has generated considerable excitement. While revenue generation won't begin until its launch (not expected before 2025), the nearly three million pre-registrations worldwide within a week demonstrate strong early interest.
The success of Perfect World's new leadership in navigating these challenges remains to be seen. The coming months will be crucial as they implement key initiatives, streamline operations, and strive to restore financial stability.
For more gaming news, see our other article on Wang Yue, the open-world ARPG nearing its testing phase.
