File photo/NBD

Perfect World, a major player in China's gaming industry, has stabilized its position this year after a period of significant change. The company's financial report for the first half of 2025 shows a strong recovery, with revenue reaching 3.691 billion yuan, a 33.74% year-on-year increase, and net profit of 503 million yuan, a dramatic turnaround from a loss in the previous year.

This rebound was driven by a multi-pronged strategy. The gaming business remains the core, contributing 2.906 billion yuan in revenue, a 9.67% increase. While PC gaming revenue grew, mobile gaming saw a decline due to product life cycles. The company is focusing on strengthening its classic IPs like "Jade Dynasty World" while also placing significant bets on new titles, such as the upcoming open-world game "Neverness to Everness," which is seen as crucial for attracting a younger audience.

The company's esports and film/TV divisions also played a key role. The film and television business saw an explosive 756.35% increase in revenue, reaching 767 million yuan. However, some analysts question whether this growth is sustainable or can effectively support the core gaming business.

Perfect World is also cautiously expanding its esports footprint, leveraging its exclusive operation of major titles like "DOTA 2" and "CS" in China. The company's successful hosting of large-scale events like the Shanghai Major demonstrates its operational capabilities and commitment to building a robust esports ecosystem.

Despite these successes, challenges remain. Perfect World's overseas revenue declined, a stark contrast to competitors who are seeing strong growth abroad. Analysts suggest that the company must either innovate or expand globally to maintain its long-term competitiveness. Perfect World's ability to achieve sustained profitability hinges on its upcoming game releases and its strategic expansion into new markets.