Perfect World Names New CEO Amidst Company Restructuring

Perfect World, the Chinese gaming giant behind popular 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 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 projected as a major success, underperformed in international beta testing and has remained surprisingly inactive on the App Store and 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 the 379 million yuan profit reported last year. The gaming division is expected to 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. While the outlook is challenging, 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 6th, 2024, is expected to revitalize interest and potentially improve financial standing.

A New Hope: Neverness to Everness

Perfect World's newly announced game, Neverness to Everness, has generated considerable excitement. While revenue generation is still some time away (a 2025 launch is the earliest projection), the impressive pre-registration numbers—nearly three million worldwide within a week—indicate strong player anticipation for this urban-themed open-world RPG.

The success of Perfect World's restructuring and new leadership remains to be seen. The coming months will be crucial as the company focuses on key initiatives, streamlines operations, and aims to restore its financial stability.

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