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An Interest Management (IM) mechanism eliminates irrelevant status updates transmitted in Networked Virtual Environments (NVE). However, IM itself involves both computation and communication overhead, of which the latter is the focus of this paper. Traditionally, there are area-based and cell-based IM mechanisms. This paper proposes a hybrid IM mechanism for peer-to-peer NVEs, that utilizes the cell-based mechanism to reduce Area-Of-Interest (AOI) updates in the area-based mechanism so as to reduce its communication overhead. To compare the new mechanism with the two traditional approaches, a multiplayer game scenario is simulated. The performance results show that, compared to the traditional mechanisms, the hybrid mechanism reduces the upload bandwidth consumption by more than 25.28 percent, reduces the overhead ratio from more than 67.54 percent to only 25.17 percent, and allows more than 5000 players in the Internet to join the same game with today's network upload bandwidth.