By Sagar V. Mankar 
In a strategic move, US-based game developer Scopely, known for titles like Monopoly Go, has acquired Chengfeng Studio from Chinese gaming giant Perfect World for $34.5 million. The deal is set to optimize Perfect World’s business operations while helping Scopely strengthen its foothold in the global gaming market.
As part of the agreement, most of Chengfeng Studio’s employees, including its core team, will leave to establish a new company in China. Scopely will hold a minority stake in this new venture. Additionally, key game assets and documentation from Chengfeng’s current project, Codename PIE, will be transferred to Scopely.
Scopely itself was acquired by Saudi Arabia’s Savvy Games Group in a massive $4.9 billion deal in 2023, reflecting its robust growth strategy.
Perfect World’s Financial Struggles and Strategic Shift
Earlier this year, Perfect World faced financial challenges, including widespread layoffs affecting nearly 1,000 employees across cities such as Beijing, Shanghai, and Chengdu. Reports also suggested the discontinuation of titles like One Punch Man: World and Perfect New World, though company insiders later disputed these claims.
Financially, Perfect World reported a net loss of approximately $4.1 million (¥29.8 million) in Q1 2024, marking a sharp 112% decline compared to its $33.2 million (¥241.3 million) profit in Q1 2023. Amid these struggles, the company also experienced leadership changes, with CEO Xiao Hong and co-CEO Lu Xiaoyin stepping down in July.
Chengfeng Studio’s Role in Perfect World’s Strategy
Founded in 2020, Chengfeng Studio had been actively developing Codename PIE. With the sale to Scopely, Perfect World expects to recover a significant portion of its development costs and refocus its resources on more promising projects aligned with its revised business strategy.
The transaction is projected to yield a net profit of $16.4 million (¥120 million) after accounting for expenses, positively impacting Perfect World’s earnings for the upcoming year.
Scopely’s Growing Influence in Gaming
Scopely, a subsidiary of Savvy Games Group, has made its mark in the mobile gaming industry with popular titles like Star Trek Fleet Command, Marvel Strike Force, and Monopoly Go. This acquisition represents another milestone in Scopely’s ambition to expand its global reach and enhance its game portfolio.
Perfect World’s shares responded positively to the news, closing 1.9% higher at $1.51 (¥11) per share, outperforming the broader Shenzhen market’s 1.3% rise.
Sources: Perfect World official announcements, PocketGamer.Biz.