Although Sea went public more than a decade ago, the company has made significant strides in the metaverse space, including the acquisition of Refract, an artificial intelligence-based gaming company. Sea has raised $6.3 million to help develop wearable technology, known as AXIS, that supports full-body motion capture.
Refract also bought game developer Deep Dive Studios, which will make immersive online games like the fighting game FreeStriker. Sea has also made other gaming acquisitions, facilitated by its game development and publishing division called Garena and its investment subsidiary Sea Capital.
In the fourth quarter of 2021, Ocean’s revenue increased 105.1% to $3.2 billion from $1.5 billion last year. This show is due to the popularity of its games. However, the company reported a loss and fell short of Wall Street’s revenue estimates, posting -$617.6 million, compared to -$523.59 million in the fourth quarter.11.
This performance was largely due to concerns about “some moderation in online activity and fluctuating user engagement”. In addition, Chinese heavyweight Tencent reduced its stake in Sea from 21.3% to 18.7%. This move resulted in a more than 11% drop in Sea’s share price12 .