Xishanju has undergone a major leadership change. On December 1, an internal company-wide email announced that Guo Weiwei would step down as CEO of Xishanju but retain his role as chief producer. KINGSOFT CEO and Xishanju Chairman Zou Tao has been appointed acting CEO of Xishanju, with Guo reporting directly to him.
The reshuffle is widely interpreted as linked to the poor performance of "Jie Xian Ji." Financially, KINGSOFT's online gaming and related businesses have seen a significant decline, and Zou Tao's interim appointment signals KINGSOFT's intention to tighten oversight of Xishanju.
According to the email from Xishanju's board, Guo Weiwei resigned as CEO due to personal career planning. The board respected his decision and approved his continued role as chief producer. Guo, a prominent figure in China's gaming industry, has been closely tied to Xishanju and its flagship title "JX3" since joining the studio in 2004. He rose through the ranks, becoming VP in 2011, CEO in 2016, and senior VP in 2018 while remaining lead producer of "JX3."
The email also confirmed Zou Tao's interim CEO appointment. Guo's shift back to a production-focused role follows the disappointing launch of "Jie Xian Ji," a heavily invested project in development since 2014. After multiple reboots, the game officially launched on July 2 this year but has struggled. Steam data shows peak concurrent players plummeting from 132,800 at launch to under 4,000 by November, with a domestic approval rating below 50%.
On November 12, Guo acknowledged the issues in an open letter, pledging a revamped "Jie Xian Edition" with expanded platform support, including PS5. Zou Tao noted during Q3 earnings that the team was still optimizing gameplay and operations, requiring more time.
Industry analysts downplayed the leadership change as routine, unrelated to any single product's performance. However, critics pointed to fundamental flaws in "Jie Xian Ji," arguing that its struggles reflect deeper creative challenges at Xishanju.
Meanwhile, KINGSOFT's Q3 revenue fell 17% year-on-year to 2.419 billion yuan, with net profit dropping 48%. Gaming revenue plunged 47% to 898 million yuan, dragged down by declining income from "JX3" and "Chen Bai Jin Qu," while "Jie Xian Ji" failed to gain traction.
Zou Tao highlighted upcoming international IP games like "Goose Goose Duck" and "Angry Birds" for 2025 but acknowledged Xishanju's need to evolve beyond its reliance on the "JX" franchise. Analysts noted that while peers like NetEase have successfully expanded with new IPs, Xishanju's stalled projects and shrinking revenue raise concerns about its ability to innovate.
Observers suggest reinventing existing IPs may be Xishanju's fastest path to revival, but without breakthrough innovation, its prospects remain uncertain.