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 been appointed as the new CEO. This leadership transition signals a strategic shift for the company, aiming for a turnaround and a renewed direction. The new CEO's strategies will be closely watched.
Perfect World Faces Challenges
The company's recent struggles include substantial job cuts and declining revenue from existing games. Even the highly anticipated One Punch Man: World underperformed in international beta testing and has remained stagnant since April, with no updates on major app stores.
Perfect World anticipates significant financial losses in the first half of 2024, projecting a net loss of 160-200 million yuan, compared to a 379 million yuan profit in the same period 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 significantly reduced in size.
Despite these challenges, there's a glimmer of hope. The upcoming update for Tower of Fantasy, Hotta Studio's open-world gacha RPG, aims to reinvigorate the title and potentially improve its financial performance. The update, version 4.2, is scheduled for August 6, 2024.
Furthermore, the newly announced game, Neverness to Everness, has generated considerable pre-registration interest. While not expected to launch until at least 2025, 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 restructuring and new leadership will depend on their ability to execute key initiatives, streamline operations, and ultimately, restore financial stability. The coming months will be crucial in determining the company's future.
For more gaming news, see our other article on Wang Yue, the open-world ARPG nearing its testing phase.
