SEA (formerly known as Garena)

[Wildreamz]

But this should not come as a surprise to investors familiar with gaming industry product lifecycle.

Is it possible for you expand on this? How does this impact their Digital Entertainment business?

Thank you

Games are like movies, it has high initial investment cost, high execution risks (games developed might not be a hit), and then limited life span. Just like movies; if you get a hit, you get high return on initial investment when it was released; if you get a dud, you lose money.

Look at the numbers of SEA's digital entertainment division 12 months ago:


Now look at the numbers today:


This is the natural progression/life-cycle of a gaming business.

Another way to visualize this, check Google Trends:


See the same pattern?

(not vested)