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 leadership shift indicates a strategic repositioning for the company. The new CEO's strategies will be key to the company's future success.

Perfect World Faces Challenges

The company's recent performance has been challenging, marked by extensive layoffs and declining revenue from existing games. Even the highly anticipated One Punch Man: World underperformed in international beta testing and has remained stagnant since April, with no updates on major app stores.

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 this loss, with a projected net loss of 140-180 million yuan. Further compounding the situation, the middle office team has been significantly reduced.

Despite these setbacks, there's potential for a turnaround. The upcoming update for Tower of Fantasy, Hotta Studio's open-world gacha RPG, could provide a much-needed boost. Version 4.2, launching August 6, 2024, is expected to reignite player interest.

The newly announced game, Neverness to Everness, has already generated significant buzz. While not launching until at least 2025, the game's nearly three million pre-registrations within a week demonstrate considerable early interest.

The success of Perfect World's turnaround hinges on its new leadership team. The coming months will be crucial as they implement strategic changes and aim to restore financial stability.

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