New CEO Appointed at Perfect World After Layoffs and Resignations

Perfect World, the powerhouse behind acclaimed titles like *Persona 5: The Phantom X* and *One Punch Man: World*, is navigating through turbulent times. The company has recently seen a major shakeup in its leadership following significant layoffs affecting over a thousand employees and a disappointing financial performance. According to a report by Game Gyroscope on the Chinese WeChat forum, CEO Xiao Hong and co-CEO Lu Xiaoyin have stepped down but will remain 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 reset and chart a new course. It will be fascinating to see the strategies that the new CEO will implement to steer the company forward.

Rough Patch for Perfect World

The company has faced significant challenges, including substantial layoffs and declining revenue from its current game lineup. Even *One Punch Man: World*, which was expected to be a blockbuster, underperformed during its international beta testing and has shown no updates on the App Store and Google Play since April. Perfect World is bracing for a substantial financial setback 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 the previous year. The game business is expected to bear the brunt of this loss, with a projected net loss of 140-180 million yuan.

Adding to the challenges, 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 roller coaster, is set to release version 4.2 on August 6, 2024. This update could bring much-needed excitement and potentially some financial relief.

On a brighter note, Perfect World's newly announced game, *Neverness to Everness*, has already generated significant buzz. Although it won't launch until 2025 at the earliest, the urban-themed open-world RPG has garnered nearly three million pre-registrations worldwide within just a week. This early interest indicates a strong appetite among gamers for what Perfect World is developing in this new realm.

The coming months will be crucial for Perfect World as the new management works to navigate the company out of its current troubles. Their focus will be on key initiatives, optimizing workflows, and hopefully, restoring financial stability.

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