Major Nelson talks Guitar Hero downloads, Halo 3

When you were putting up the story at 2AM, were you expecting such a negative response from fans?
Major Nelson: Well, I found out about it late last night, before I posted it. I looked at it and said "okay." But you have to remember, I used to work in the broadcasting industry and in music for a long time and I know that content is not linear. It's not like you go to iTunes, and you're buying the same thing. There's testing that's involved, and there's also licensing involved. There's a lot of elements involved. When there's music involved, that brings up a lot of licensing issues. [pointing at camera] Kids, if you want to make a lot of money, write music. Write the hits, I should say ... It's roughly about $2 a song that you can play over and over. You can't get interactivity with a song on iTunes, and I don't want to defend it: it is what it is.

MN: We worked with Red Octane to work on prices that make sense, and they clearly can't sell it at a loss. They have to pay the rights licensing.
But weren't the development costs already taken care of for the PS2 version?
MN: But you can't look at it that way, it's a different platform. You have to consider the Leaderboard. People like to say it's the same, but the licensing is not the same. You have to re-license it. It's a different platform. While on the surface it may look fairly simplistic, and people are saying "XYZ should be done," but we're not Red Octane. I work for Microsoft, and we're just the conduit at this point.

One commenter pointed out that if all the old songs of the original PlayStation 2 version were released on Xbox Live, it would cost significantly more than simply buying both Guitar Hero and Guitar Hero II on the PS2. People feel flustered by that. Why are we paying more for old content?
MN: Once again, it's not old content. The contracts have to be renegotiated on a new platform, and it's also involving digital distribution, so there's a lot of things involved.
So what about Red Octane? Are they coming to you, saying the game's been out for a week--time to bring out new content?
MN: Well, Red Octane listens to what their customers want. I can't speak on behalf of them, unfortunately. I do know that they have some really aggressive plans to release more content. I don't know what their pricing schedule's going to be. I just don't know. I do know that they've made comments in the past, saying they want to release more content.

Microsoft has always said it's the gamer's choice, especially when it comes to things like the HD-DVD drive, and the hard drive. Why is it that we're forced to download three songs at once? To get a Bad Religion song, we have to get Red Hot Chili Peppers as well. Isn't this actually taking away the choice from gamers?
MN: We've talked about what it takes to get content onto Marketplace. You guys know: it has to be processed, it has to be developed. Is it easier to process one song and release it and would have it to be more expensive? Or can you take some of that development, bundle it together, and drop the price down. All those songs have to go through that process. If you have three songs entering the approval process, individually, that's three times more problems--and there's more probability for error. So, let's bundle them together, and test them as a unit and drive the price down.
So let's say we're in a fantasy world. How much would an individual song cost?
MN: Once again, I can't comment because I'm not making those individual deals.

Let's talk about the upcoming Spring Update. These updates are very different from Sony's approach, which come on a much more frequent basis.
MN: Well, let me ask you, which approach do you like better? [Discussion ensues.] At Microsoft, we deal very strongly with publishers. Because of the way we integrate with the games, we have to let our publishers know what updates are coming, 6 or 7 months before, so they can work them into the games. Our experience is so tied into what you're doing in the game. Your Friends List is always there, regardless of what game you play. So, it's a lot of work we have to do with our publishers, so that they can integrate what we're doing in a really holistic fashion.
The competition between PS3 and Xbox 360 has been great for gamers. One of the more significant upgrades coming up in the Spring Update is support for MPEG-4 and h.264, something Sony has been touting for a long time.
MN: Yeah, we want to take the best feedback and see what are the things that we can do. I don't want to say easy but will make the most impact. One of things people have been begging for is multi-party chat. We're working on a couple of things, and we know there are a certain things that people want and that's what we're going to do. Sony and Microsoft take very different approaches. Ours is a lot more predictable--you know there's going to be an update in the Spring, in the Fall. We have an ongoing conversation with our audience.

The other big topic on people's minds is Halo 3. The public beta is coming out May 16th.
MN: Once again, I hate doing this. But, Bungie's doing their own thing--they do not tell me anything. We're just a partner in crime. They tell us what they're doing, and we make sure we can provide from the Live service perspective. It's their product, they create the rules for their product. They're running the beta, they're running everything.
Some fans have been complaining that three weeks is just too short for a beta.
MN: Well, I guess I hate to be a cop-out, but I'd say "go ask Bungie." If I were them, I would that three weeks is plenty of time to run a beta. I don't even know when their release is. They have to have enough time to take all that feedback and get it into the final product.

Will Xbox Live be able to handle the beta? Can you promise us that it won't break on us?
MN: I've been told by our Operations Director that we've built out--that we're good to go.
Many have been saying that out of the big guys out there, it appears that Microsoft has the biggest involvement with the community.
MN: Xbox Live is a living, breathing environment with over 6 million people on it. It's like the dial tone. You pick it up and there's always something going on. That's one of the reasons why I exist. We really wanted a dialogue with the community and go out and meet people like yourselves. To talk to the people that are reading this--you guys have some really great ideas. We take that feedback, and we love the excitement around the product. The ladies and gentlemen that work on the product love the product. Everybody loves this product. We want to make it the very best. I'm thrilled that Sony's coming out with new ideas that's going to cause us to think in different ways.

We've talked Sony, we've talked Microsoft. You own a Wii yet?
MN: Yeah, I have a Wii. I got a Wii probably about two, three months ago. I happened to be at Target one day, and the gentleman I was talking to said "I can't help you right now, we're unloading the truck right now." I was asking him for something else for my wife but I asked him, "You don't have any Wiis there did you?" He said yeah, and I said "one please." So, my wife and I play it every week. We play bowling. My wife absolutely loves Wii Play. She absolutely loves it.
Do you have a Mii? Does it look like you?
MN: She made it for me, and it does sort of look like me, but it's not public yet. There's no mini-Major Nelsons floating around. I'm really excited to see what the first party titles are going to look like. Some of the third-party titles I've seen so far haven't really grabbed me.
At that point, the music started booming loudly as the Guitar Hero event was about to begin. Thanks to the Major for taking time to speak with us and don't forget to check out Major Nelson's official blog at www.majornelson.com. Additional reporting provided by Andrew Melnizek.
Also: Uncensored, unedited version of the interview can be viewed at GameTrailers.










Reader Comments (Page 1 of 3)
Slaziman @ Apr 12th 2007 9:10AM
He seems pretty honest. Nice chat.
AirIntake @ Apr 12th 2007 9:14AM
Justify the price all you want, Major. People will still not buy.
Anonymous @ Apr 12th 2007 9:14AM
I lol'd at comparing Xbox Live to a dial tone for some reason.
Rask @ Apr 12th 2007 9:18AM
I like the Major. He's open with the gamers, honest with us and will give props to the competitors when props are due
He gets a bad rep at time simply because at times he's really stuck between a rock and a hard place(ie Gamers and the Official XBox Line).
His is the only web show I listen to on a constant basis.
RYAN @ Apr 12th 2007 9:21AM
yeah I enjoyed reading that. I also love that he owns a wii, and that he likes it :). Honest comments about the 3rd party titles without being inflammatory. Looks like Microsoft has a good spokesman on their hands
felixlighter @ Apr 12th 2007 9:30AM
Well if what he's saying about all the costs associated with releasing Guitar Hero 2 songs on Xbox Live Marketplace is true, then apparently releasing these songs packs at all is a bad idea. The cost outweighs the value but excuses aren't going to make me pay that ridiculous price. What a shame...
On the other hand, if the songs are some how miraculously released at a reasonable price then we know it was a simple case of being too greedy and they came to their senses. Only time will tell...
Tigerj @ Apr 12th 2007 9:32AM
I understand the license on a new system and that for every system the same process has to go through. What I don't understand is how they come with these prices when you see other simular platforms doing the same thing at a cheaper cost.
For example on the 360, lets take DDR.
The 70+ songs are the originals for one, not covers, though one can debate on a remix. The game even has the videos of some songs. They have 10 songs on the marketplace and prices as...
1 Song = 100 points
10 songs - 800 points (20% Discount)
Now I don't know if these songs have been in the XBox, PS2 versions as I didn't look them up. But how is it that Konami can release a song at a 100 points and in it's full digital format and yet Red Octane can't for a cover band?
Either somone is doing some bad negotiating or they are giving us a line of BS.
LongshotX @ Apr 12th 2007 9:38AM
He's a cool guy. Neither Nintendo or Sony has that kind of connection to the gamers.
IslandLife @ Apr 12th 2007 9:38AM
As much as I can't stand MS, I must give this guy credit for being rather open, and opposed to bad-mouthing competitors, *cough* Reggie *cough* he prefers to take the high road and simply state that they just do things differently. Sounds like a really good spokesperson.
Cutriss @ Apr 12th 2007 9:42AM
Comparing pricing to Guitar Hero 1 isn't a bad idea.
Comparing pricing to Guitar Hero 2 is even better. Assuming you take out a paltry $20 for the controller, you're paying $70 for over 70 songs on the game disc. That's $1 for one song, with all the leaderboards/coop crap intact.
It's lucky for gamers that they missed the mark by so much. Had it been only $1.80 per song, people might've swallowed it anyway.
Apple can get away with blaming the recording industry because the recording industry really *is* shafting them. This is an entirely different matter.
teknomusik @ Apr 12th 2007 9:43AM
Thanks for the bonus points Major!
Travis @ Apr 12th 2007 9:44AM
Are you people kidding me? You can't be any more of a shill than this guy.
People have pointed out that if you were to repurchase all the songs that come on Guitar Hero 1 (which would cost like $50 to buy the game), you end up spending somewhere around $90. That's almost double.
The licensing, testing, etc were somehow paid for at the $50 price, along with the development and PHYSICAL distribution of the fricking game.
Face it, you're being screwed over. And this guy is paid to go out and calm you over so that you just put up with it. Luckily, his job is pretty easy when his audience is a bunch of easy push-overs.
GrahktheMighty @ Apr 12th 2007 9:45AM
I think that the convo with major went well, he actaully eased my heart on the whole gh2 issue with price, and it made sense. Sure, it sounded like what youd expect from the company preforming the reeming, but I have to say, the explanations make sense. Its hard to make money in the music industry, even harder since piracy has run rampant, so when as an artist you see a dollar sign, your gonna take it, you have to eat afterall. Dont expect boycotting the product to do anything, the number of bycotters will be far to few for x box to notice, and trust me, many of you people bycotting will buy the song the first time your at a buddies and hes rocking some ozzy, or queen, and you cant becuase your a rebel with a cause.....5 seconds later you yelling at your download status bar to hurry up.
bag0rice @ Apr 12th 2007 9:48AM
I say BS
Derrick @ Apr 12th 2007 9:52AM
Joystiq, you shouldn't ask him about developers stating that they try to bring out free content on XBLM for there games but Microsoft makes them charge something. You shouldn't ask them if that was true or not. Because I don't want to paid for EVERY DAMN THING that comes through MP.
AirIntake @ Apr 12th 2007 9:52AM
@GrahktheMighty
Go ahead and be the guy that actually purchases the ripoff songs. I think you're mistaken about the number of people that are willing to pay this price. If I have a choice of rocking out with a buddy for 4 minutes, or drinking 3 mores beers each, I know what I'll do. I'll just play the songs on Frets on Fire for free until they're released for a reasonable price. Thanks RedOctane and MS for making the GHII guitar compatible with Windows!
felixlighter @ Apr 12th 2007 9:54AM
GrahktheMighty,
It's not about boycotting Red Octane or the Marketplace. It's about not paying more for something than it's worth. If you don't mind the price or Major Nelson's explanation somehow makes the pack more valuable to you then go right ahead and buy it. But if you do think it's too expensive, don't cave in and just buy because you want it... You need to exercise a little self control.
heretrix @ Apr 12th 2007 9:54AM
Say what you want about the Major, but his show is pretty informative. His podcast gives you a pretty good idea of what MS has going on in the XBL community and is far better than anything Sony or Nintendo is doing. Yes, he is a MS shill. It's his job, But I respect the work that he puts in.
32_Footsteps @ Apr 12th 2007 9:55AM
To be honest, I have to call bull on the "we need to relicense the songs" theory. While it is true that you have to relicense them, they managed to license every single song in the first GH, build a new engine from scratch, and build everything else and still result in a game where the final product that clocked in at $50 (before the controller is factored in).
All they had to do for this version is create a second player line for co-op play (which should have been very easy at this point), build a Leaderboard, and relicense the songs. You cannot tell me that this resulted in a near 100% increase in price and have me believe it.
Saneless @ Apr 12th 2007 9:55AM
He's saying they're bundled for submission and testing? Oh bull shit. They just know that if people want one song bad enough, they're more likely to pay an extra 4.25 to be buying 2 pieces of shit they don't want. Or at best they'll want 2 songs and be spending an extra $2 for one they don't want.
I'll just stick with my PS2 version until they release a disc that has them all for a reasonable price.
nick @ Apr 12th 2007 9:57AM
Translation: Somebody is getting rich off of this. And it's the end customer that's getting screwed.
Kevin @ Apr 12th 2007 10:00AM
This guy is pretty cool, honest, and nice.
A++++++++++++++++++++++++++++++++++++++ WOULD INTERVIEW AGAIN
polly @ Apr 12th 2007 10:04AM
What a bunch of tap dancing bs. It costs more because it's interactive, licensing fees, testing costs and bandwith? That is bull. The songs on the disks have all those costs already factored in except for bandwith, which is more than made up for in the added costs of physical material for their product, shipping and distribution costs, etc. Make all the excuses you want Major, that shit is overpriced and you all damn well know it. I'd prefer they not offer it at all if this is how they're going to handle it.
Chocolate Starfish @ Apr 12th 2007 10:05AM
My little sister pays $3.99 for a 10 second song clip to be the ring tone on her cell without a second thought. People will gladly pay the asking price for these songs. NEVER underestimate the stupidity of the masses.
(Political tangent: Dear Maryland, this is why we have the electoral college. Please quit trying to fuck things up)
Rask @ Apr 12th 2007 10:06AM
Ohh and to add to my comment at #4, as much as I like and respect the work Major puts in for the community, there's no way in hell I'll be buying those songs at that price point.
100 MSP's per song MAX.
Neal @ Apr 12th 2007 10:07AM
You guys didn't actually believe all that did you?
Yeah, he seems like a nice guy... but regarding the Guitar Hero thing... there is NO WAY is costs nearly that much to put those songs out. Those songs have already been released, no way the negotiations for the songs would be difficult at all. They already had the songs, they just needed to port it over. As stated, if they can get 70 songs or whatever on a game, then had development costs for the game, and distribution... yeah... I bet they need to charge that much per song.
He seemed like a nice guy, and I don't blame him for what he said... its not like hes gonna say "Yeah, MS and red Octane are screwing you" hed be fired in a second... He did exactly what hes paid to do, tell you what you want to hear, and appeal to the crowds.
A+ for him. Congrats for everyone taking the news so well and making him look like a hero, you probably just got him a raise (PS, now that he has a raise, the next downloads will cost even more)
heretrix @ Apr 12th 2007 10:08AM
"The licensing, testing, etc were somehow paid for at the $50 price, along with the development and PHYSICAL distribution of the fricking game."
Looks like somebody has been in suspended animation for awhile.
do you have any fucking idea how tight the music industry is about their music? If they could make you pay for every fucking note you played and then charge you every time you mention the song they would. Licensing music is a total and complete BITCH.
That part of his response is probably 100 percent true. They probably have to licence every song differently depending on it's use.
I was bitching about the price yesterday, and I still think it's rape, but after hearing that, I'd have to say I'm not suprised.
Fiery Food Dude @ Apr 12th 2007 10:08AM
Complaining about the business practices of a toy guitar product is hilarious to me.
DBX00 @ Apr 12th 2007 10:09AM
What do you guys expect? Everyone told you that Microsoft was going to either get you on the front end with the cost of the console or kill you slowly with proprietary accessories and microtransactions.
Chocolate Starfish @ Apr 12th 2007 10:09AM
Re-licensing explanation makes good sense. When the original Guitar Hero song came out, there was no established franchise. It was just as likely the public would view the game as a stupid gimmick and it would disappear forever.
Now, the music execs know that the game is a golden goose. They're going to squeeze it as hard as they can. These guys recognize that there's a strong demand for the songs, and can bring that leverage to the negotiating table.
aylera @ Apr 12th 2007 10:12AM
"build a Leaderboard"
I laugh at this causing any effect on the cost. Some basic server somewhere stores a few bytes of data for each song, and then stores some more bytes for just a week.
Go rent a basic web server for a month, host CS:Source, and run a basic stat gathering mod. Done deal. Didn't cost me tens of thousands of dollars.
I don't even think people need to actively boycott this, I'm sure tons of people just flat out won't buy these packs just because they're a bad deal. If we were boycotting this, it would mean that it was a good deal, but we disagreed with the principal.
steverl22 @ Apr 12th 2007 10:15AM
How much does Major Nelson/XMicrosoft pay some of you guys to follow him around and do damage control?
This is a RIP OFF plain and simple, now he has his "Marketing Team" covering up his BS with crap like:
8. He's a cool guy. Neither Nintendo or Sony has that kind of connection to the gamers.
by: LongshotX
Give me a break. What happened to we wouldn't pay for things you can find on other console for FREE.
RUSKULL @ Apr 12th 2007 10:17AM
Let's just assume for a moment that one million people bought GH2, and every person bought all song packs for GH1 (approx $100). So what he is saying then is that it would cost at least one hundred million dollars for licensing and development for old content? Wow, this must be the most expensive game ever made!
I just don't buy it, especially when it's a download service. Whomever fault this is, greed is definitely to blame, no question.
And Joystiq, come on. You gotta be asking more ballsy questions. Oh well, there's still the Red Octane interview.
Jarrett @ Apr 12th 2007 10:17AM
See this is my issue with all of this....gamers act like everything at some point should either be free or under a 1.00. People have to be paid for services. Otherwise why do it. Yeah the songs and bundles seem kind of high .... but this is what gamers clamore for. More songs. More content. More maps. It is going to cost. Now some of you can call bs on the licensing fee to music artist and what not...but it's real. Music artist are pissed and want to be paid after all the piracy. That is the world we live in. Gamers have a choice....they can always not buy it.
Dan @ Apr 12th 2007 10:17AM
If the issue really is the costs - especially licensing related costs - then the way to deal with it from RedOctane's side is simply transparency.
If we know that between licensing, development and approval it's costing them $1.85 per song downloaded, then we're likely to be far more accepting of the price.
I understand the chances of them revealing the financial terms of their licensing arrangements are slim to none - but even ballpark figures would go a long way to remedy the idea that the DLC is simply a money grab.
If you're going to release content at a price point so far above expectations, you need to do a really good job of explaining both the value of the content relative to the price AND the cost issues which are forcing the price so high.
An inability to do this is what has been destroying the PS3's sales thus far - and we're seeing MS/RedOctane fall into the same trap.
slimbloke @ Apr 12th 2007 10:19AM
Stop complaining.. just don't buy it. no-one is forcing anyone to spend the cash, and even if it's expensive, it's still not a fortune, is it!?! Most people probably have more than this left over in change after buying a coffee this morning.
Wes @ Apr 12th 2007 10:23AM
Honestly, I don't think this is entirely microsofts fault. Microsoft says the companies must charge, but honestly, I think its the company with the product who determines who much to charge for these products. $2.00 a song is a bit pricey but not too much more epxneisve than buying single mp3s online..I guess... However, I think the company should have marked like 2 for a $1.00 if they wanted many more sales.
RUSKULL @ Apr 12th 2007 10:26AM
#36
Why don't you stop complaining about people complaining?
Heads up: Nobody is forcing you to read the comments, not to mention try and police people's opinions.
John @ Apr 12th 2007 10:29AM
While I give him props for sounding like a real video game fan and not some corporate smuck. I still think the songs are over priced and the fact they come in a bundle is bunk! I think I would rather pay slightly more so I can get the option of not having to purchase a bundle of songs when I only want one song in the pack.
heretrix @ Apr 12th 2007 10:29AM
I love how people get on here with the whole "this is what we should be paying" attitude. Shut the fuck up and make your own shit and see if you want to give it away for free. The people that make this stuff have to eat too. They deserve to make a profit off of this stuff. It's fun and people love it. Why can the make money off of it? You have a choice BUY IT OR DON'T. I choose not to, but I don't blame these people if they want to make money so that they can make more stuff......And drive Ferraris.
Jason @ Apr 12th 2007 10:32AM
I emailed Major Nelson to get an invite to a Gears of War event. At the event I saw him and said hello and he remembered me, going so far as to know my odd last name, from that email. I didn't hold him up too long but he was really genuine and friendly. He was chatting about games of all kind with everyone.
Good dude.
Jake @ Apr 12th 2007 10:37AM
Red Octane is determining the pricing. If you don't like it, don't buy it. The extra content doesn't take away from the game itself, which is well worth it if you don't have the PSII version already.
If they are unable to sell much at that price, perhaps they can work things out to bring it down. I sure as hell won't buy at that price. It is essentially $6 for a song I love, a song that is okay, and one crapfest.
People in these threads are assuming they can just say "I call BS, $1 per song is how it should go" and think that has some kind of validity. You have absolutely no idea how the financial structure and licensing is worked out for them.
Perhaps they think only a small percentage of "hardcores" will buy extra content at any price, so they are charging high to cover their stuff.
The only thing we actually know is that Red Octane wants to make the most money possible. They think they can make more selling a $6 3 song bundle than wide open $1 a song. Deal with it. You aren't being "screwed" if you don't buy it.
I would honestly be fine with buying my 4 or 5 favorite songs at $2 a piece. But I refuse to pay $6 for one song I really like, one okay song, and a crapfest.
Viridium @ Apr 12th 2007 10:44AM
LOL... you ladies keep arguing about those song prices. I'll head home tonight, pick up my 1984 Ibanez RoadStar II, and start kicking out whatever "hott lixx" I want to - for FREE.
TheHostileDwarf @ Apr 12th 2007 10:46AM
I call shananigans. It's all spin control. There is no way that relicensing the songs drives the price to 200% of the original. Screw you, Major Nelson and Red Octane.
I really, really want Cowboys from Hell when it comes out, but I will not pay at this crap pricing.
"Fool me once, shame on — shame on you. Fool me — you can't get fooled again."
shredo @ Apr 12th 2007 10:57AM
just what i thought a kiss ass would say...now before you take this comment to heart. read further...no comment no comment no comment... on any real question you we're asked. how much did microsoft pay you to defend them and red octane.. i like guitar hero so much i payed the $89.00 bottom line old songs should be free.. major your suppose to be behind us,one of us and the MAJORity of us are complaining about guitar hero 2 and downloads.. next time choose the side of your friends and stand up with us..you are our voice
Jack of No Trades @ Apr 12th 2007 11:00AM
LOL... you ladies keep arguing about those song prices. I'll head home tonight, pick up my 1984 Ibanez RoadStar II, and start kicking out whatever "hott lixx" I want to - for FREE.
Hell yea buddy. I been practicing Decadence Dance by Extreme on my Ibanez GRX20. I try to play More Than Words on my acoustic but its hard to get it to sound right.
WizarDru @ Apr 12th 2007 11:08AM
"but regarding the Guitar Hero thing... there is NO WAY is costs nearly that much to put those songs out. Those songs have already been released, no way the negotiations for the songs would be difficult at all."
I'm pretty irritated over the pricing...but "NO WAY"? I'm sorry, have you heard of the RIAA? The 'R' doesn't stand for Reasonable or Rights, just so you know. And DRM doesn't stand for 'DUDE! Radical Music!', either.
Online distribution is a BIG DEAL to the RIAA and the big music companies. Pretending otherwise is just naive. If you don't think they had to totally renegotiate these contracts for the GH I songs, I think you're wearing blinders.
Now, if these songs were to appear on the PS3 with a significantly lower price...well, that's another story. Of course, the other issue is that the PS2 version has sold over 1.3 million copies to a potential market of 115 million or so. With a market share that's 10x LESS, the economies of scale (and profitability) aren't going to potentially be the same.
Let's be honest...it's highly unlikely that 1 in every 6 XBL users will even purchase the game, let alone the packs.
Brad @ Apr 12th 2007 11:11AM
Why not ask him about releasing Free DLC on Live and why MS is preventing game developers from doing this? That's the real question he needs to answer.
Myrpok @ Apr 12th 2007 11:20AM
In the deleted scenes for Clerks 2, Kevin Smith reveals that, to play the "Goodbye Horses" song (the song in Silence of the Lambs when Buffalo Bill is dancing in someone's skin) by Q Lazzarus, it cost him FIFTEEN THOUSAND dollars... for each individual time he played the song. That's a lot of bones for an extremely obscure song that's twenty years old and wasn't really every popular on it's own accord, and whose band members probably aren't even around making music anymore. So for those who think there's NO WAY... you probably are just too used to getting all your music free off the intarwebs. I trust the Major.
Fuji @ Apr 12th 2007 11:22AM
This may have been brought up, but I can't stand wading through all of this just to see if this point has been made.
When it comes to relicensing fees for material, let's look at it this way; the first Guitar Hero made a load of money. As a song publisher you look at how much you got paid for the songs being used, and then look at how much the company using said songs made. When they come back around (there's really only two or three music publishing companies out there) would you offer the same fees as before?
As for DDR, unless Konami owns the rights to all of those songs, then that argument is moot. If they do own all of those songs, then they can sell them for whatever they choose. If they have to get licensed granted again, then they have to factor that cost.
Not all songs are licensed for the same amount. Why would Red Hot Chili Peppers charge someone the same amount as "No Name Local Emo Band Name" would?