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 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 leadership 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 layoffs represent a considerable setback. Revenue from existing games has declined, with even the highly anticipated One Punch Man: World underperforming in international beta testing. The game has remained strangely inactive, with no updates on the App Store or Google Play since April.

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 will 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 from 150 employees to a mere dozen. Despite these difficulties, the upcoming update for Tower of Fantasy offers a glimmer of hope for a turnaround. Tower of Fantasy, Hotta Studio's ambitious open-world gacha RPG, has experienced fluctuating financial performance. Version 4.2, launching August 6, 2024, is expected to reinvigorate player interest and potentially improve financial standing.

Perfect World's newly announced game, Neverness to Everness, has generated significant pre-registration numbers. While revenue generation from this title won't begin until its 2025 launch (at the earliest), the nearly three million pre-registrations within a week indicate strong player anticipation for this urban-themed open-world RPG.

The success of Perfect World's new management team in navigating these challenges remains to be seen. The coming months will be crucial as they implement key strategies, streamline operations, and strive to restore financial stability.

For more gaming news, be sure to check out our other article: Wang Yue, The Open World ARPG Is Stepping Out Of The Shadows As Testing Phase Nears.