KINGSOFT(HK:03888) Sou Hu Cai Jing·2025-12-02 11:21Core Viewpoint - The resignation of CEO Guo Weiwei from Xishanju is linked to the underperformance of the game "Jiexianji," which has seen a significant decline in player engagement and revenue, leading to a broader crisis within the company [1][19][21]. Group 1: Management Changes - Guo Weiwei resigned as CEO for personal reasons but will continue as the chief producer, while Zou Tao, CEO of Kingsoft, has been appointed as the acting CEO [1]. - The resignation was seen as both unexpected and anticipated, with speculation that it was due to the poor performance of the game "Jiexianji" [2][19]. Group 2: Game Performance - "Jiexianji" initially had a peak online player count of 310,000 during testing but saw a drastic drop to under 10,000 within a month of its release [4]. - Despite efforts to revitalize the game through new content and participation in events, the player base continued to decline, with online numbers only briefly rising to 5,000 after the S2 season launch [8][10]. - The game has been criticized for not aligning with player expectations, focusing on less engaging gameplay mechanics while neglecting desired content [10][15]. Group 3: Financial Impact - Kingsoft's gaming revenue has seen a significant decline, with Q3 revenue reported at 898 million yuan, a 47% year-over-year decrease, and the gaming segment's contribution to total revenue dropping from 59% to 37% [19][20]. - Sales and distribution expenses increased by 55% year-over-year, indicating a push for marketing despite poor game performance [20][21]. Group 4: Industry Context - The gaming industry is experiencing intense competition, with a shift towards high production values and rapid content delivery, making it challenging for titles like "Jiexianji" to succeed without substantial investment [12][28]. - The success of previous titles like "Chenbai Jinzhu" provided a false sense of security, leading to misjudgments in the development and marketing strategies for "Jiexianji" [24][25]. Group 5: Future Outlook - Despite the challenges, there remains potential for "Jiexianji" to recover, contingent on the team's ability to focus on quality and align with player expectations [26][29]. - The transition of Guo Weiwei to a production role may allow for a more dedicated approach to improving the game, although time is running out for the title to regain player interest [26][29].