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 may remain as directors.
Gu Liming, a long-serving company veteran and former Senior Vice President, has assumed the role of CEO. This leadership transition signals Perfect World's intention to restructure and chart a new course. The new CEO's strategic direction will be closely watched.
Perfect World's Recent Challenges
The company's recent layoffs represent a major 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, compared to a profit of 379 million yuan the previous 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 just a few dozen. While the future remains uncertain, 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 anticipated to revitalize interest and potentially improve financial standing.
The newly announced game, Neverness to Everness, has generated considerable excitement. While revenue generation is still some time away (a 2025 launch is the earliest expectation), the nearly three million pre-registrations worldwide within a week demonstrate significant player anticipation.
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 strategic 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.
