F2P giant Perfect World experiencing financial downturn

It's rare to hear news of under-performing free-to-play titles these days, but Gamasutra is running a piece on the recent stumble of industry titan Perfect World Entertainment. The Chinese online game maker recently saw its third quarter profits fall 28.8 percent to $31.9 million and also experienced a stock price dip of 16.2 percent.

According to the report, PWE's television and film business revenues surpassed expectations and helped keep the company profitable, but the performance of the online gaming division took a notable downturn (due in part to the weak returns on Battle of the Immortals). Though PWE predicts a one to five percent gaming growth spurt in the fourth quarter of 2010, analyst firm Janco Partners is decidedly less optimistic. "Aggregate portfolio online game portfolio metrics continue to disappoint and we're not confident new game releases will stabilize a decidedly negative performance trend," the firm said.

You'll find all the details at Gamasutra.

This article was originally published on Massively.