New CEO Appointed at Perfect World Amid Layoffs and Resignations

Perfect World, the powerhouse behind popular titles like *Persona 5: The Phantom X* and *One Punch Man: World*, is undergoing a significant leadership transformation. Amidst layoffs affecting over a thousand employees and a lackluster financial performance, the company's CEO, Xiao Hong, and co-CEO, Lu Xiaoyin, have stepped down, according to a report from Game Gyroscope on the Chinese WeChat forum. Despite their departure from the CEO roles, there's chatter that both will remain with the company as directors.

Taking the helm is Gu Liming, a seasoned veteran who previously served as Senior Vice President. This leadership change signals a fresh start for Perfect World, as it aims to navigate its way back to stability. It will be fascinating to watch the new strategies that Gu Liming will implement to steer the company forward.

Rough Patch For Perfect World

The company has faced a challenging period, marked by significant layoffs and a decline in revenue from its current lineup of games. Even *One Punch Man: World*, which was expected to be a blockbuster, underperformed during its international beta testing and has seen no updates on the App Store and Google Play since April. This stagnation has raised concerns about the game's future.

Perfect World is bracing for a substantial financial hit in the first half of 2024, projecting a net loss of 160-200 million yuan, a stark contrast to the 379 million yuan profit reported the previous year. The game division is expected to suffer the most, with a projected net loss of 140-180 million yuan.

Further exacerbating the situation, the middle office team has been drastically reduced from 150 members to just a handful. Despite these setbacks, there's a glimmer of hope with the upcoming update for *Tower of Fantasy*. Developed by Hotta Studio, this ambitious open-world gacha RPG has experienced a financial roller coaster. The eagerly anticipated Version 4.2 is set to launch on August 6, 2024, potentially injecting some much-needed excitement and financial relief into the company.

Adding to the mix of developments, Perfect World's newly announced game, *Neverness to Everness*, has already created a buzz. Although it won't launch until at least 2025, the urban-themed open-world RPG has garnered nearly three million pre-registrations worldwide within a week, indicating strong interest and potential for future revenue.

The next few months will be crucial for Perfect World as the new management strives to address these challenges. Their focus on key initiatives, optimizing workflows, and hopefully restoring financial health will be pivotal in navigating out of these troubled waters.

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