Perfect World Names New CEO Amidst Restructuring

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 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 fresh start and a new direction. The upcoming strategies under the new CEO will be closely watched.

Perfect World's Recent Challenges

The company's recent performance has been marked by significant challenges. Large-scale 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 and showing little activity on app stores 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 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. Despite these difficulties, the upcoming update for Tower of Fantasy offers a potential turning point, and the strong pre-registration numbers for their new title, Neverness to Everness, suggest positive future prospects.

The newly announced Neverness to Everness, an urban-themed open-world RPG, has already garnered nearly three million pre-registrations globally within a week. While revenue generation from this title is not expected until at least 2025, this early interest indicates strong player anticipation.

The success of Perfect World's turnaround hinges on its new management team's ability to navigate these challenges. The coming months will be crucial as the company focuses on key initiatives, streamlines operations, and aims to recover its financial footing.

For more gaming news, read our other article on Wang Yue, the upcoming open-world ARPG nearing its testing phase.