New CEO Appointed at Perfect World After Layoffs and Resignations

Perfect World, the powerhouse behind acclaimed titles such as *Persona 5: The Phantom X* and *One Punch Man: World*, is navigating through a significant leadership transition. In the wake of layoffs affecting over a thousand employees and a subpar financial performance, CEOs Xiao Hong and Lu Xiaoyin have stepped down from their roles, according to Game Gyroscope's report on the Chinese WeChat forum. However, there's a twist: both are expected to remain with the company as directors.

Taking the helm as the new CEO is Gu Liming, a seasoned veteran who previously served as Senior Vice President. This leadership change hints at Perfect World's intention to rejuvenate and chart a fresh course. It will be fascinating to observe the new strategies Gu Liming will implement to steer the company forward.

Rough Patch for Perfect World

The company has faced substantial challenges, including significant layoffs and a dip in revenue from its existing game lineup. Even *One Punch Man: World*, which was poised to be a blockbuster, underperformed during its international beta testing and has shown no signs of progress since April, leaving fans in the dark.

Perfect World is bracing for a financial downturn in the first half of 2024, projecting a net loss ranging from 160 to 200 million yuan, a stark contrast to the 379 million yuan profit recorded the previous year. The gaming division is expected to bear the brunt of this loss, with projections of a net loss between 140 and 180 million yuan.

Compounding the difficulties, the middle office team has been drastically reduced from 150 to just a few dozen members. Despite these challenges, there's a glimmer of hope with the upcoming update for *Tower of Fantasy*. Set to launch its Version 4.2 on August 6, 2024, this update from Hotta Studio's open-world gacha RPG could bring both excitement and financial relief.

Amidst the turmoil, Perfect World's newly announced game, *Neverness to Everness*, has sparked significant interest. Although it won't hit the market until at least 2025, the urban-themed open-world RPG has already garnered nearly three million pre-registrations worldwide in just a week, signaling strong anticipation from the gaming community.

The effectiveness of Perfect World's new leadership in navigating these challenges remains to be seen. The coming months will be crucial as they focus on pivotal projects, streamline operations, and aim to recover financially.

For more gaming updates, don't miss our coverage on *Wang Yue, The Open World ARPG*, which is gearing up for its testing phase.