Sohu.com (SOHU)

If we fail to satisfy the changing demands of game players, our revenues may be adversely affected.

Our online game revenue depends on continuous consumption of our game services by game users. As of December 31, 2008, we had more than 57.3 million registered accounts for our games. We may lose our online game users if we cannot provide continuously satisfactory service. For example,

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Our failure to address the above-mentioned issues could adversely affect the in-game experiences of game players, damage the reputation of our games, shorten the lifespan of our games, and eventually result in the loss of our game players and a decrease in our revenues.

Furthermore, for the games that we license from third parties, there is usually an initial period during which we do not have access to the source code. As a result, we have to rely on the licensors to provide the updates, enhancements and many supporting services during such period, giving us less control over the quality and timeliness of such updates, enhancements and supporting services. If our game players are not satisfied with the level of services they receive, they may choose to not play the games, leading to a decrease in our revenues.

If we fail to satisfy the changing demands of game players, our revenues may be adversely
affected.

Our online game revenue depends on continuous consumption of our game services by game users. As of December 31, 2008, we had more
than 57.3 million registered accounts for our games. We may lose our online game users if we cannot provide continuously satisfactory service. For example,