New CEO Appointed at Perfect World Amid 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 waters. The company has recently seen a major shakeup in its leadership following significant layoffs affecting over a thousand employees and a less-than-stellar 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 transition signals Perfect World's intent to recalibrate and chart a new course. It will be fascinating to see the innovative strategies that the new CEO brings to the table.

Rough Patch for Perfect World

The company has faced a challenging period, marked by substantial 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 phase. Since April, there have been no updates on the App Store and Google Play, leaving fans in the dark about its progress.

Perfect World is bracing for a significant financial hit 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 a projected net loss of 140 to 180 million yuan. Additionally, 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 experienced its own financial ups and downs, is set to release version 4.2 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 stirred considerable interest. Although it won't hit the market 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 enthusiasm suggests that gamers are eager to see what Perfect World has in store with this new venture.

The coming months will be crucial for Perfect World as the new management works to steer the company out of its current troubles. Their focus will be on key initiatives, streamlining operations, and hopefully, turning the financial tide.

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