Wednesday, February 9, 2011

Axing The Axe

Over at Activision Blizzard, call it the day that music died.

The company behind "Guitar Hero" is pulling the plug on the title after a five year run as one of the most successful video game titles of the last decade. The decision follows Viacom's decision last November to sell Harmonix, who was behind the "Rock Band" video games. Harmonix was eventually sold to an investment firm, and in an ironic twist, created the first "Guitar Hero" game.

Game industry analysts, which is as cushy a job as it sounds, have long lamented what the call the "weakness in the music genre". After their initial surge of popularity in the mid-2000s, the games lost their profitability as the required guitars and musical equipment had been acquired. Even with extra songs purchased via download and expansion packs, Activision Blizzard did not feel the title was adequately profitable.

The company's shares tumbled after the announcement, which follows an up and down year. Early 2010 numbers were disappointing, but the company finished with a strong fourth quarter, between "Call of Duty: Black Ops" earning $1 billion after just six weeks in stores and high sales for their latest "World of Warcraft" expansion. Their opening 2011 quarter was back down, posting a $233 million loss. The discontinuation of the game will equal about 500 jobs lost from Activision Publishing's business, which has about 7,000 employees.

Oh well...it was a fun game at drunken parties, but no substitute for real instruments.  And this stupid kid is going to have to find a new career...I'm guessing it's one where he asks if you want to super-size it.

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