Perfect World (Chinese name: 完美世界) means that this world is perfect

Perfect World was founded in 2004 by Chi Yufeng. A 1994 graduate of Tsinghua University, Chi had founded Beijing Hongen Education and Technology in 1996, which sold educational software to teach Chinese consumers how to use personal computers and learn English. He established Perfect World, then also known as Perfect World Games, as a developer and publisher of online multiplayer video games. The company became listed on the Nasdaq stock exchange in 2007. In 2008, Chi founded the film production company Perfect World Pictures. After Perfect World Games was delisted from Nasdaq in 2015, it was merged with Perfect World Pictures, which was traded on the Shenzhen Stock Exchange, in 2016. The combined company was renamed Perfect World. Perfect World Investment & Holding Group (Chinese: 完美世界控股集团有限公司), a holding company founded by Chi on 14 August 2013, owns a controlling interest in Perfect World.

Perfect World bought the developer Cryptic Studios from Atari, SA in May 2011 for €35 million. The transaction was completed by August that year.

Perfect World Entertainment was Perfect World's North American video game subsidiary. It was established in June 2008.

Perfect World sold Perfect World Entertainment and Cryptic Studios to Embracer Group. Both Studios are under Gearbox as of 2021.