New CEO Appointed at Perfect World After Layoffs and Resignations

Perfect World, the powerhouse behind popular titles such as Persona 5: The Phantom X and One Punch Man: World, is navigating through a significant leadership transition. Following extensive layoffs affecting over a thousand employees and a lackluster financial performance, CEO Xiao Hong and co-CEO Lu Xiaoyin have resigned, as reported by Game Gyroscope on the Chinese WeChat forum. Despite stepping down, there's chatter that they will remain as directors, suggesting their influence will continue to be felt.

The reins have been handed to Gu Liming, a veteran of the company and former Senior Vice President, who is now stepping up as the new CEO. This shift in leadership signals Perfect World's intent to recalibrate and chart a fresh course. With Gu Liming at the helm, it will be intriguing to see the new strategies he implements to revitalize the company.

Rough Patch For Perfect World

The company has faced significant challenges recently, including substantial layoffs which represent a major blow to any organization. Additionally, revenue from its existing games has declined. Notably, One Punch Man: World, which was expected to be a blockbuster, underperformed during its international beta testing. Since April, there have been no updates on the App Store and Google Play, leaving fans in the dark about its progress.

Perfect World anticipates a steep financial downturn in the first half of 2024, projecting a net loss between 160-200 million yuan, a stark contrast to the 379 million yuan profit recorded the previous year. The gaming division is expected to suffer the most, with a forecasted net loss of 140-180 million yuan. Compounding these issues, the middle office team has been drastically reduced from 150 to just a few dozen employees. Despite these setbacks, there's a glimmer of hope with the upcoming update for Tower of Fantasy. Hotta Studio's open-world gacha RPG, which has seen its share of financial fluctuations, is set to launch version 4.2 on August 6, 2024, potentially bringing some excitement and financial recovery.

In brighter news, Perfect World's newly announced game, Neverness to Everness, has sparked considerable interest. Although it won't launch until 2025 at the earliest, the urban-themed open-world RPG has already attracted nearly three million pre-registrations worldwide within just a week of its announcement. This early buzz indicates a strong demand for Perfect World's future offerings.

The coming months will be pivotal for Perfect World as the new management works to navigate out of these turbulent times. Their focus will be on key initiatives, optimizing workflows, and hopefully restoring financial stability.

For more gaming news, keep an eye on our coverage of Wang Yue, The Open World ARPG, which is gearing up for its testing phase soon.