Send us Feedback

Sohu.com (SOHU)
Analysis
SUMMARY
BULLS
BEARS
TOPICS
Data
DATA CENTRAL
STOCK CHART
Financials
SEC FILINGS
BALANCE
INCOME
CASH FLOW

SOHU » Topics » 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.

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,

 

  •  

We may not detect programming errors, flaws or bugs before we launch new games, or new extension packs for existing games. In addition, we may not be able to solve the errors, flaws or bugs in a timely manner when reported by our users or detected by ourselves;

 

  •  

We may not respond and/or resolve complaints from our users timely;

 

  •  

We may experience uncertainties when operating the games, such as breakdowns of servers, interruptions of the network, and crashes of systems, which could cause temporary interruption of access for our game users to our game services;

 

  •  

We may fail to provide our users a secure game system. For example, hackers may invade our systems and steal our players’ account information and in-game virtual properties; and

 

  •  

We may fail to detect and prevent players from obtaining unfair in-game advantages by installing and using hacking or cheating tools to facilitate character enhancement.

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.

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki