Industry Dynamics - Hangzhou has released measures to promote the overseas expansion of online literature, web dramas, and online games, focusing on high-level development and quality export, with 25 specific initiatives across nine areas [2] - WeChat mini-games are projected to see nearly 20% growth in commercial scale by 2025, with over 300 products generating more than 10 million yuan in quarterly revenue and a stable monthly active user base exceeding 500 million [3] - Giant Network has launched a new AI-native gameplay in its game "Supernatural Action Group," integrating AI models into core gameplay, allowing NPCs to interact with players in real-time [5] - Perfect World has announced the criminal detention of three art-related personnel for corruption, focusing on issues in art outsourcing and procurement management [6][7] Company News - The CEO of Zhixing Star Tong, Zhang Lei, has resigned due to personal reasons, with the company stating that his departure will not negatively impact operations [4] - Games Workshop has prohibited employees from using AI in content creation and design processes, reflecting a cautious internal AI policy [8] - Cygames has established a dedicated AI studio to focus on the systematic research and application of AI technology in game creation [9] - Shift Up's CEO emphasized the necessity for widespread AI proficiency in South Korea to compete with large-scale investments in the gaming industry from China and the U.S. [10] - Meta plans to cut about 10% of its Reality Labs workforce, including the closure of several VR studios, as part of a shift in focus towards AI and mobile technologies [11] - Germany will increase its annual gaming industry support fund to 125 million euros (approximately 1.017 billion yuan) starting in 2026, aiming to strengthen its position in the global gaming industry [12]

Core Viewpoint - Perfect World Co., Ltd. has announced the criminal detention of three art-related personnel for corruption, primarily involving issues in art outsourcing and procurement management [1][3]. Group 1: Corruption Allegations - Three employees from the Qingyun and Lingxiao studios are implicated in corruption, with specific allegations of collusion with suppliers to inflate procurement prices and accepting bribes [1][3]. - Diao Mouqi, the art department leader for the "New Zhu Xian World" project, is accused of leveraging his position to collude with suppliers and has been dismissed with a "never to be rehired" clause [3]. - Song Mouyang and Wang Mouliang, both from Lingxiao studio, are also under investigation for similar misconduct, including the illegal outsourcing of procurement to close associates and accepting substantial bribes [3]. Group 2: Company Response and Historical Context - Perfect World has previously reported on anti-corruption efforts, with announcements in July 2025 regarding eight employees involved in collusion with suppliers, and in August 2024 regarding bribery and embezzlement by staff from the Xingyun studio [4]. - The company has stated that all relevant information is contained within the official announcement [3]. Group 3: Financial Performance and Shareholder Actions - On January 5, 2024, the actual controller of Perfect World, Chi Yufeng, reduced his shareholding by 6.86 million shares, amounting to over 100 million yuan, decreasing his ownership from 32.35% to 31.99% [5][6]. - The company has faced significant operational challenges, with a reported revenue of 5.57 billion yuan in 2024, a 28.5% decline year-on-year, and a net loss of 1.29 billion yuan compared to a profit of 490 million yuan in 2023 [7]. - However, the launch of the game "Zhu Xian World" at the end of 2024 has led to a recovery in performance, with a reported revenue of 1.73 billion yuan in Q3 2025, a 31.45% increase year-on-year, and a net profit of 162 million yuan, marking a turnaround from previous losses [7].

Core Viewpoint - Perfect World is intensifying its internal anti-corruption efforts by addressing serious employee misconduct and illegal activities, particularly within its art department [2][4]. Group 1: Internal Actions - On January 15, Perfect World announced the results of investigations into multiple cases of employee and supplier collusion and misconduct from 2025, leading to the criminal detention of three art department employees [2]. - The implicated employees were part of key projects, including the art team for "New Zhu Xian World" and the original action group leader and art director for "Perfect New World," who engaged in bribery and price inflation during outsourcing procurement [2][4]. - The company has a zero-tolerance policy towards corruption and has established channels for reporting misconduct, leading to ongoing investigations based on new information [4]. Group 2: Previous Anti-Corruption Efforts - This is not the first large-scale anti-corruption initiative by Perfect World; a previous action in July 2025 involved a broader range of employees, including heads of various departments and four suppliers being blacklisted [4]. - The current investigation is more focused, targeting specific individuals involved in art procurement, demonstrating the company's commitment to thorough accountability, even for former employees [4]. Group 3: Industry Context - The gaming industry's art outsourcing sector is prone to corruption due to its high expenditure and specialized nature, making it a critical area for governance [4]. - Perfect World's repeated announcements of internal anti-corruption cases reflect a shift towards more refined governance practices within the gaming industry, emphasizing the importance of internal risk control as a core competitive advantage as competition matures [4].

Group 1 - Perfect World Co., Ltd. announced the criminal detention of three art-related personnel for corruption, focusing on issues in art outsourcing and procurement management [2] - The involved individuals include a team leader from the Qingyun Studio and two former employees from the Lingxiao Studio, all accused of colluding with suppliers to inflate procurement prices and accepting bribes [2] - The company has previously reported multiple anti-corruption efforts, including the involvement of eight employees from three studios in collusion with suppliers [3] Group 2 - The actual controller of Perfect World, Chi Yufeng, recently reduced his shareholding by selling 6.86 million shares, earning over 100 million yuan, which decreased his ownership from 32.35% to 31.99% [3] - Since the lifting of the lock-up period in June 2019, Chi has conducted five rounds of significant share reductions, accumulating nearly 10 billion yuan through various means [4] - The company faced significant operational challenges, with a revenue drop of 28.50% to 5.57 billion yuan and a net loss of 1.29 billion yuan in 2024, leading to project shutdowns and workforce reductions [4] Group 3 - Following the launch of the game "Zhu Xian World" at the end of 2024, the company's performance began to improve, reporting a revenue increase of 31.45% to 1.73 billion yuan in Q3 2025 and a net profit of 162 million yuan, marking a turnaround from previous losses [4]

Core Viewpoint - Perfect World Co., Ltd. has announced the criminal detention of three art-related personnel for corruption, focusing on issues in art outsourcing and procurement management [1][4]. Group 1: Corruption Allegations - Three employees from Qingyun Studio and Lingxiao Studio are implicated in corruption, involving collusion with suppliers to inflate procurement prices and accepting bribes [1][2]. - The involved personnel include: - Diao Zhongqi, art department leader for the "New Zhu Xian World" project, who allegedly colluded with suppliers to inflate prices and accepted bribes [2][3]. - Song Yuyang, former action group leader for the "Perfect New World" project, who allegedly misused his position to inflate prices and awarded contracts to close associates [2][3]. - Wang Xiaoliang, former art director for the "Perfect New World" project, who allegedly introduced unqualified suppliers and colluded with them to inflate prices [2][3]. Group 2: Company Response and Historical Context - Perfect World has a zero-tolerance policy towards corruption, having previously reported multiple cases of employee misconduct involving suppliers [2][5]. - The company has been actively addressing corruption issues, with previous announcements regarding investigations into employees' collusion with suppliers [5]. Group 3: Financial Performance and Shareholder Actions - In January 2025, the actual controller of Perfect World, Chi Yufeng, reduced his shareholding by 6.86 million shares, amounting to over 100 million yuan at an average price of approximately 16.7 yuan per share [5][6]. - The company's financial performance has faced challenges, with a reported revenue of 5.57 billion yuan in 2024, a 28.5% decline year-on-year, and a net loss of 1.288 billion yuan [7]. - However, the company has shown signs of recovery, with a revenue of 1.726 billion yuan in Q3 2025, a 31.45% increase year-on-year, and a net profit of 162 million yuan, marking a turnaround from previous losses [7].