Perfect World, the Chinese gaming giant behind popular titles like Persona 5: The Phantom X and One Punch Man: World, is undergoing a significant leadership change. Following substantial layoffs affecting over a thousand employees and underwhelming 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 transition signals a strategic shift for the company as it aims to revitalize its operations and chart a new course. The new CEO's strategies will be closely watched.
Challenges Facing Perfect World
The company's recent performance has been marked by significant challenges. Widespread layoffs represent a major setback, coupled with declining revenue from existing games. Even the highly anticipated One Punch Man: World underperformed in international beta testing and has remained surprisingly inactive 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 the 379 million yuan profit recorded last year. The gaming division will 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, shrinking from 150 employees to just a few dozen. While the situation is undeniably difficult for Perfect World, the upcoming update for Tower of Fantasy offers a glimmer of hope. Tower of Fantasy's Version 4.2, launching August 6, 2024, is expected to reinvigorate player interest and potentially alleviate some financial pressure.
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 until 2025 at the earliest), the nearly three million pre-registrations within a week demonstrate significant player anticipation for Perfect World's new open-world RPG.
The success of Perfect World's turnaround hinges on its new leadership team. 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.
Latest Downloads
Downlaod
Top News
