Popular game Free Fire witnesses fall in revenue along with dip in Sea Ltd. shares

Free Fire's parent company, Sea Ltd, is plummeting in the US market due to the gaming app’s sudden ban in India. On February 14, 2022, the Indian Government banned 54 Chinese apps that posed a threat to the country's national security. The famous ‘battle royale’ game was one of the apps on the banned list.

Sea Ltd, which is the parent company of Garena (the publisher of Free Fire), saw a decline of 18.56 in the New York Stock Exchange after its unexpected ban in India. Sea Ltd's stocks were already facing a tough time in the market and India's ban on Free Fire has made things worse for the company.

The multi-player game was the most famous mobile-based game in India and had around 40 million active users in the country, and also a steady growth since its launch. The ban has come as a surprise to many as both Sea Ltd and Garena are Singapore-based companies, and hence people are confused about the government's decision to ban the app.

Even though many have lost hopes about the ban being lifted, some players still expect the app to be re-launched again in the country. However, Garena has not released an official statement regarding the app being unbanned in the future.

Sea Limited shares have fallen substantially after reports emerged claiming its marquee mobile title Free Fire is getting banned in India. India was one of the biggest markets for Free Fire. The game made $34.3 million in the South Asian country in 2021, which was a massive growth of 125% year-over-year.

The company distributes game titles on Garena in various countries across Southeast Asia and Taiwan, including the multiplayer online battle arena (MOBA) games League of Legends and Heroes of Newerth, the online football (soccer) game FIFA Online 3, the first-person shooter game Point Blank, the mobile MOBA game Arena of Valor and the mobile racing game Speed Drifters.