This excerpt taken from the SOHU 10-K filed Feb 28, 2008.
We rely on our online games for a significant portion of our revenues. If we fail to retain existing online game users or attract additional users, our revenues may be adversely affected.
As of December 31 2007, we operated two online games, namely TLBB and BO, which collectively represent approximately 22% of our total revenues for the year ended December 31, 2007. Our online game revenue depends on continuous consumption of our game services by game users. As of December 31, 2007, we had more than 23 million registered users for our games. We may lose our online game users if we cannot provide continuously satisfactory service. For example,
Our failure to address the abovementioned issues could adversely affect the in-game experiences of users, damage the reputation of our games, shorten the lifecycle of our games, and eventually result in the loss of users and a reduction in our revenues.