Perfect World is selling Chengfeng Studio to optimize its business strategy and recover development costs.

Perfect World has not disclosed the specific reasons behind its decision to proceed with this deal. However, it may be linked to the company’s financial challenges. In recent quarters, Perfect World has reported significant declines in its financial performance, specifically in the July-September 2024 period; the company’s revenue dropped by 24.36%, while net profit attributable to shareholders fell by a staggering 190.27%.

Perfect World has confirmed that it will provide severance packages to departing employees in full compliance with applicable labor laws.

Chengfeng Studio’s acquisition will allow Scopely to expand into China

Founded in 2020, Chengfeng Studio is developing a video game called Codename PIE. The studio’s core team has announced plans to establish a new company in partnership with Scopely, which will hold a minority stake in the new venture. Perfect World remains entitled to use the project’s assets in certain ways specified under the deal.

Saudi Arabia’s Savvy Games Group acquired Scopely for $4.9 billion in April 2023. As part of its ongoing gaming strategy, SGG keeps expanding into different regions, and the acquisition of Chengfeng Studio marks a key milestone for having a game company in China.

Katya Isakova, Director of Corporate Development at Scopely, congratulated her colleagues Summer Cheng (Corporate Development Director at Scopely) and Lei Zhang (Vice President and General Manager of Scopely China) on the new acquisition.