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 waters. 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. However, there's a twist—they're 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 transition signals Perfect World's intent to reboot and chart a fresh course. It will be fascinating to see what innovative strategies Gu Liming will implement to steer the company back to success.

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. Since April, there have been no updates on the App Store and Google Play, leaving fans in the dark.

Perfect World is bracing for a substantial financial hit 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 gaming division is expected to bear the brunt of this loss, with a projected net loss of 140-180 million yuan.

Adding to the company's woes, the middle office team has been drastically reduced from 150 to just a few dozen employees. 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 sparked considerable interest. Although it won't launch until 2025 at the earliest, the urban-themed open-world RPG has already garnered nearly three million pre-registrations worldwide within 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 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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