Lingxi Games leadership to step down to make way for young executives

Alibaba Group’s Lingxi games: Lingxi Games, video games arm of Alibaba Group, announced that its leership team will step down to pave way for younger management, in an internal memo. This move aligns with Alibaba's strategy of promoting individuals born after 1985 to management positions, aiming to foster a startup mentality and prevent stagnation within company.

As part of a comprehensive restructuring initiative, Alibaba has opted a holding company management model and categorised its business into six primary units. Over past year, leership changes have also occurred within Alibaba's domestic e-commerce, cloud, and local services divisions.

According to a company-wide email from Zhan Zhonghui, current he of Lingxi Games, he and two or executives will step down by end of March. Zhou Bingshu, a seasoned game producer, will assume leership responsibilities. Zhan, approximately 50 years old, will be succeeded by Zhou, who is in his mid-30s, as confirmed by a source familiar with matter.

Notably, Lingxi Games gained prominence with its mobile game "Three Kingdom Tactics," developed by Zhou and released in 2019. This strategy game, which allows players to compete in building empires, generated over $1 billion in revenue within its first two years, according to SensorTower, a market research firm.

Zhan Zhonghui previously founded Guangzhou Ejoy in 2011, following a tenure at NetEase Inc. spanning more than a dece, where he served as chief operating officer. Alibaba acquired Ejoy in 2017 for $1 billion, rebranding it as Lingxi Games. As of publication, Alibaba has not responded to Reuters' request for comment on this development.

(With Reuters inputs)