Google-Friendly Content Optimization: Perfect World Appoints CEO

Chinese gaming giant Perfect World, known for titles like Persona 5: The Phantom X and One Punch Man: World, is undergoing significant leadership changes. Following substantial layoffs affecting over a thousand employees and disappointing financial results, CEO Xiao Hong and co-CEO Lu Xiaoyin have resigned, according to a Game Gyroscope report on WeChat. However, reports suggest they will remain on the board as directors.

Veteran Perfect World executive Gu Liming, formerly Senior Vice President, assumes the CEO role. This transition signals a strategic shift for the company, aiming for a turnaround and a renewed direction. The new leadership's strategies will be key to the company's future success.

Perfect World Faces Challenges

The company's recent struggles include widespread layoffs and declining revenue from existing games. Even the highly anticipated One Punch Man: World underperformed in international beta testing and remains stagnant, with no updates since April on major app stores.

Perfect World projects a substantial financial loss in the first half of 2024, forecasting a net loss of 160-200 million yuan, a sharp 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 drastically reduced.

Despite these challenges, there's potential for recovery. Hotta Studio's Tower of Fantasy, an open-world gacha RPG, is preparing a major update (Version 4.2, August 6th, 2024) that could boost performance. Furthermore, the newly announced game, Neverness to Everness, has already garnered significant pre-registration numbers (nearly three million globally within a week), suggesting strong player interest in Perfect World's upcoming urban-themed open-world RPG (launch expected no earlier than 2025).

The coming months will be crucial for Perfect World's new management, as they implement revitalization strategies and focus on operational efficiency. Their success in navigating these challenges will determine the company's future trajectory.

For more gaming news, see our coverage of Wang Yue, the open-world ARPG nearing its testing phase.