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 been appointed the new CEO. This leadership transition signals a strategic shift for the company, aiming for a revitalization and a new direction. The new CEO's strategies will be closely watched.
Perfect World Faces Challenges
The company's recent layoffs represent a considerable setback. Revenue from existing games has declined, and even the highly anticipated One Punch Man: World underperformed in international beta testing. The game has remained surprisingly 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 a mere dozen. While the outlook appears 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, but the anticipated Version 4.2 release on August 6, 2024, could provide a much-needed boost.
The newly announced game, Neverness to Everness, has generated considerable pre-registration interest. While revenue generation is still some time away (launch is not expected before 2025), the nearly three million pre-registrations within a week globally indicate strong player anticipation for Perfect World's new 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 the company focuses on key initiatives, streamlines operations, and works towards financial recovery.
For more gaming news, see our other article on Wang Yue's open-world ARPG, which is nearing its testing phase.
