Core Viewpoint - The article discusses the recent anti-corruption actions in the gaming industry, highlighting the case of Zhong Shouyou and its implications for the sector's health and governance [3][4][7]. Group 1: Zhong Shouyou's Situation - Zhong Shouyou's internal investigation led to the criminal detention of former studio head Jiang, who was involved in the development of the underperforming game "Xianjian World" [3][4]. - The company reported a revenue of 1.93 billion RMB and an adjusted net loss of 2.08 billion RMB for the 2024 fiscal year, primarily due to the delayed launch of "Xianjian World" and significant impairment charges [5]. Group 2: Industry-Wide Anti-Corruption Efforts - The gaming industry has seen a surge in anti-corruption investigations, with multiple companies, including Perfect World and Bilibili, reporting serious violations and criminal activities among their staff [7][8]. - Analysts suggest that these intensified anti-corruption measures are crucial for the sustainable development of gaming companies, as they address long-standing issues stemming from rapid growth and inadequate regulations [8].

Core Viewpoint - The corruption case involving Jiang Haitao, former general manager of the Starry Sky Studio under Zhongyou Mobile, has revealed severe misconduct linked to the failure of the game "Xianjian World," leading to his criminal detention and ongoing investigations [1][2]. Group 1: Corruption and Project Failure - Jiang Haitao's corruption involved manipulating contracts and misappropriating funds during the development of "Xianjian World," which had over 300 million yuan invested but resulted in poor player feedback and low-quality output [2][4]. - The project faced significant issues such as low player retention rates and poor performance, attributed to the misallocation of funds and strategic mismanagement [2][4]. Group 2: Industry Context and Response - The gaming industry is currently undergoing a compliance overhaul, with several companies tightening audits and addressing corruption amid a shrinking market environment [3][4]. - High dependency on outsourcing in game development has created opportunities for corruption, particularly in areas like art and special effects, where costs can account for 30%-50% of total development expenses [3]. Group 3: Implications for Zhongyou Mobile - The incident has severely impacted Zhongyou Mobile, which reported a net loss of 241 million yuan in the first half of 2024, a fivefold increase year-on-year, and saw its stock price plummet over 70% [4]. - The failure of "Xianjian World" has diminished the value of the "Xianjian" IP, which is now viewed as overexploited due to low-quality derivative works [4]. Group 4: Industry Transformation - The case signifies a broader crisis in the gaming industry, marking the end of an era characterized by reckless growth and the need for a shift towards more sustainable and meticulous operational practices [5]. - Establishing robust anti-corruption measures and effective management systems is crucial for the industry's future, ensuring that creativity and commercial value can thrive in a new phase [5].

Core Points - Perfect World has initiated an internal announcement regarding a corruption investigation, revealing serious violations of company policies and labor contracts by multiple employees, with some implicated in criminal activities [2] - The investigation involves several departments, including the Million Studio, Qinyun Studio, and Hardcore Studio, with the art department being particularly affected [2] - A significant number of personnel from the art department, planning department, HR manager, and others have been detained by law enforcement [2] Summary by Sections - **Corruption Investigation**: Perfect World has reported that multiple employees and suppliers are involved in serious violations, leading to criminal charges and police reports [2] - **Affected Departments**: The corruption case includes key personnel from various departments, with the art department identified as a major area of concern [2] - **Supplier Blacklist**: Four suppliers involved in the case have been blacklisted by Perfect World, indicating a permanent cessation of collaboration [3] - **Previous Incidents**: This is not the first instance of corruption at Perfect World; a previous announcement in August 2022 detailed similar issues involving employees from the Nebula Studio and the canceled Bard game project [3] - **Industry-Wide Corruption**: The ongoing anti-corruption efforts in the gaming industry are affecting multiple companies, including Tencent and NetEase, with industry insiders noting that tightening costs have made corruption issues more visible [3]

Core Viewpoint - The recent corruption handling announcement by Perfect World has sparked significant attention in the gaming industry, revealing serious violations of company policies and labor contracts by key personnel across multiple studios, leading to criminal investigations and arrests [2][3]. Group 1: Corruption Cases - Several core personnel from Perfect World have been criminally detained for serious violations, including accepting bribes and misconduct in content production [2]. - Specific cases include the head of the Million Studio, Qin, who was detained for accepting bribes from multiple suppliers, and the HR manager, Bai, who was dismissed for severe negligence and non-compliance with audit investigations [2]. - Employees from the Qingyun Studio, including the art department lead, have also been arrested for bribery and embezzlement of company funds [2][3]. Group 2: Supplier Accountability - Perfect World has taken strict actions against implicated suppliers, blacklisting four companies, including Chengdu Xiyou Tribe Technology Co., Ltd., from future collaborations [3]. Group 3: Industry-Wide Anti-Corruption Efforts - The gaming industry in China has intensified anti-corruption measures, with major companies like Tencent and NetEase publicly reporting internal corruption cases and collaborating with law enforcement to combat commercial bribery and embezzlement [4]. - Tencent reported over a hundred cases of internal violations in 2024, leading to numerous dismissals and criminal referrals [4]. - NetEase has also faced scrutiny for corruption, with multiple employees involved in serious violations and a significant number of companies being permanently blacklisted [4]. Group 4: Perfect World's Previous Actions - Perfect World has previously addressed corruption issues, issuing a zero-tolerance policy and taking disciplinary actions against employees involved in bribery and embezzlement, which have caused substantial losses and negative impacts on the company [5]. - In January 2025, Perfect World dismissed four employees from the Million Studio for severe negligence and violations of company integrity regulations [5].