New CEO Appointed at Perfect World Amid Layoffs and Resignations

Perfect World, the powerhouse behind games like *Persona 5: The Phantom X* and *One Punch Man: World*, is navigating through turbulent waters. Amidst a significant layoff affecting over a thousand employees and a disappointing financial performance, the company has announced a major leadership shakeup. CEO Xiao Hong and co-CEO Lu Xiaoyin have stepped down, according to a report by Game Gyroscope on the Chinese WeChat forum. However, whispers suggest they'll remain involved as directors. Stepping into the CEO role is Gu Liming, a veteran of the company who previously served as Senior Vice President. This leadership change signals Perfect World's intent to reboot and chart a new course. It will be fascinating to watch the strategies the new CEO unveils!

Rough Patch For Perfect World

The company has faced a tough period, marked by significant layoffs and declining revenue from its current lineup of games. Even *One Punch Man: World*, which was poised to be a blockbuster, underperformed during its international beta testing phase and has been eerily silent since April, with no updates on the App Store or Google Play.

Perfect World is bracing for a substantial financial hit in the first half of 2024, projecting a net loss ranging from 160-200 million yuan, a stark contrast to last year's profit of 379 million yuan. The gaming division is expected to bear the brunt of this loss, with a projected net loss of 140-180 million yuan.

Compounding the challenge, the middle office team has been drastically reduced from 150 to just a few dozen members. Despite these setbacks, there's a glimmer of hope with the upcoming update for *Tower of Fantasy*. Hotta Studio's ambitious open-world gacha RPG, which has been on a financial rollercoaster, is gearing up for its version 4.2 release on August 6, 2024, which could inject some much-needed excitement—and perhaps financial relief—into the company.

Adding to the mix of anticipation and hope is *Neverness to Everness*, Perfect World's newly announced game that has already generated significant buzz. Although it won't hit the market until 2025 at the earliest, the urban-themed open-world RPG has already garnered nearly three million pre-registrations worldwide within a week, indicating strong interest from the gaming community.

The coming months will be crucial for Perfect World as the new management works to navigate the company out of its current challenges. Their focus will be on key initiatives, streamlining operations, and hopefully, turning the financial tide.

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