Music genre revenue down, EA expects Rock Band to lose $400m in 2009

by David Hinkle { May 6th 2009 at 5:15PM }

During EA's earnings call yesterday, some interesting things involving the music genre of games emerged. NPD numbers reported by COO John Pleasants show the music genre has been way down this year compared to 2008, falling 36% during this year's first quarter and 42% in March alone. As a result of this sharp downturn, EA is expecting Rock Band to lose $400 million in 2009. The Cut Scene makes a very valid observation: During these periods last year, there were no major music titles released, whereas this year saw Guitar Hero: Metallica arriving in late March.

So what does this mean for the future? Well, EA is hoping that Rock Band: The Beatles can help turn this ship around, and produce some of the cash that Rock Band 2 wasn't able to, but it would appear that the music genre is losing its luster. Is it over-saturation? We know it isn't Legos. They make everything better ...

Tags: ea, music, npd, rhythm, rock-band

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Reader Comments (Page 1 of 2)

ben @ May 6th 2009 5:27PM

i wouldn't really have a problem with the music genre slowly fading away

Alphathon @ May 6th 2009 5:53PM

Kinda like your comment apparently

ben @ May 6th 2009 6:15PM

hehe, i guess so.
i didn't realize that was so offensive

Clutch_beast @ May 6th 2009 6:08PM

How dare you dissent with popular opinion! For shame!

Mike @ May 6th 2009 6:53PM

Agreed, 100%.

Cosmo @ May 6th 2009 7:02PM

I'm also getting sick of all these Guitar Hero and Rock Band games. Then again, I also don't play online multiplayer games either.

DeepFriedSushi @ May 6th 2009 8:04PM

music genre is for casual tards.

N3M3515 @ May 6th 2009 10:57PM

Agreed, the rhythm games can go away and never come back for all I care.

Scott @ May 7th 2009 3:32AM

I don't think (or want) the genre will disappear outright, but I think we're just witnessing a fad passing. I couldn't get enough of it for two years. Now I'm more inclined to learn real guitar.

Cosmo @ May 7th 2009 1:55PM

Death to Guitar Hero and Rockband!!!!!!!!!!!!!!!!!!!!!!!!!!

Jason @ May 6th 2009 5:28PM

Watch and be amazed as the Rock Band fanboys predicted! Guitar Hero has flooded the market, caused confusion, and is eating away at the hull of the Music genre's ship. Thanks a lot. You couldn't just stick to the DLC model, could you?

Matthew @ May 6th 2009 5:29PM

Over saturated, definitely. Too many games. Too many peripherals. All too expensive.

KeenCommander @ May 6th 2009 5:36PM

Mostly the all too expensive. I mean, if I don't want a game - I just don't buy it, though I hate when these games use lesser songs from certain bands just so that they have the "must have" songs for later games and can make people buy yet another entry. But the prices are insane. I'll grant them that Guitar Hero: Metallica was a much more worthwhile than Rocks the 80's, which I just found to be a waste of money - but it's the same game. You're not innovating. For the most part, you don't have any huge new development costs. Get musicians who will go in the game for less money - they should want to, it helps sell their songs - and cut the prices down already. I just can't see paying more than $30 for most of these things. For regular games as well, I want Mad World - but I won't buy it until it comes down into that range. Especially after getting burned buying NiGHTS 2 at full price when it came out and having it go down to $20 within a few months. That's one thing I have to give Valve (other than their games being great) - $10 Orange Box is absolutely fantastic, and I was tempted on the Left 4 Dead sale. I only didn't get it because I have too many games right now that are waiting to be played.

Samuel D. Lockhart @ May 6th 2009 5:51PM

It's so very difficult for the average consumer to understand the current band format. Most people assume they have to get every instrument, and for those that don't there isn't always an easy option to get "X instrument + Game"

At my store, Guitar Hero III is selling a ton more than World Tour even now. You could argue it's the tracklist, but they don't list it on the box.

MarkHawk @ May 6th 2009 5:53PM

RB2 gives you 100 songs for 60 Dollars (Much cheaper if your looking for a deal)

Metallica gives you 49 Songs for 60 Dollars. (A better deal if you want Metallica but there are only 28 tracks)

Cost are getting higher to buy licenses for tracks now that it's proven profitable way to make money off music. There is a whole music lable that Harmonix refuses to buy from because the company demands more money for their songs. (The music label escapes me for now)

Your argument for wanting games for less isn't good enough to explain why these games aren't selling. I am buying more games then ever these days. They problem is I want way more games then I ever did and to get them all I am constantly bargain shopping.

Yes the Orange box is a nice game for 10 dollars but it's also is a game that came out Nov. 2004 and didn't see a Console release till 2007. Not only that but Portal was a relatively cheap game to make that became a huge success. I can't find the source but was a concept game that turned out to such a good concept that it became a hit. What I am trying to say is games like Mad world aren't even 3 months old yet and your comparing prices to a 5 year old blockbuster.

I'm not trying to be rude I just don't agree and wanted to say why I don't agree.

Matthew @ May 6th 2009 5:57PM

My main issue is game format. GH2 and GH3 had it right (GH2 more-so). The game actually gets progressively harder as you play. Instead of now, where it's like wow this song is kinda hard, then this next one is easy, then its like wtf hard.

KeenCommander @ May 6th 2009 7:22PM

I wasn't comparing Mad World's price to Orange Box's, not directly anyways, just saying that games overall are too expensive, that I have no plans of buying it until the price comes down, and that Valve has stumbled onto a really nice formula with their Steam sales. That's far from the only occasion I've gotten a good game deal. Also, Left 4 Dead is not that old (would I be wrong to say less than a year, I really don't remember - but not that old) and the price at my local Wal Mart is $30. And that is, if not Halo 3, a very notable title - probably more of a blockbuster than Mad World is.

B3astofthe3ast @ May 6th 2009 5:29PM

I haven't bought any DLC recently, thanks to me being broke....I need smooth criminal though...

MarkHawk @ May 6th 2009 5:57PM

A lot of friends who use to come over and play it haven't been over in months. I'd turn it on more if I had more Free DLC more often. I use to play like crazy but I got sick of setting up my iON to play by myself. I guess I should find some people online.

uranutan3 @ May 6th 2009 5:31PM

I think people are getting a bit tired of "Hit Buttons on a Plastic Controller In Rhythm With Bars/Circles Coming Down a Screen 2: Now with more songs and morefeatures that you don't care about!"

Not that I am.

stupei ace defective @ May 6th 2009 5:30PM

Though cheaply made, having to replace all those crap plastic instruments that nobody wants to own two of when they break (which they do OFTEN) has to cost them something. Exactly how many drum sets do they expect people to buy?

skyzbig @ May 6th 2009 5:31PM

How can Rock Band lose money?

It's on every platform under the sun.

merobb @ May 6th 2009 5:31PM

"EA is expecting Rock Band to lose $400 in 2009."

Wow. That's a lot. Maybe they'll sell 3 more bundles than they expect and they won't lose that whole $400.

Nice job, Joystiq. ;)

Jay Voorhees @ May 6th 2009 5:52PM

Maybe that's why this is news, because they've never lost money like...ever. So $400 loss is a HUGE deal.

or it could just be a typo and the real problem they have is the cross compatability. Either that or people are just tired of buying $250 bundles.

Clinton @ May 6th 2009 5:57PM

ya know you beat me to pointing that out so i guess i dont have too anymore, im sure if it was just 400 it would be missable

Donald @ May 7th 2009 9:17PM

I for one blame the swine flu for these shocking numbers.

Jerk Face @ May 6th 2009 5:31PM

I think what it comes down to is that people who want Rock Band already HAVE it. They're buying DLC. They're playing the game. But they don't NEED to buy it again. A living room only needs so many plastic instruments in it.

Markez @ May 6th 2009 5:35PM

I'm sure that's definitely part of it, but I'd imagine you can also attribute some of that to the state of the economy and people being real johnny pinch pennies as of late. If you don't own RB or RB2, then you're up against something of a stiff price tag. Especially when you could buy a big pile of used games for the same cost.

uncle jesse @ May 6th 2009 5:42PM

Completely agree. They wanted Rock Band to be a platform and have been keeping up with their promises by releasing excellent weekly DLC to support it and not churning out disc after disc of 'new' tracks/content.

And I'm greatly appreciative of that.

Jay Voorhees @ May 6th 2009 5:54PM

I liked your old avatar better, however, now i can truthfully say that you are a jerk face.

Deck @ May 6th 2009 6:43PM

Yeah I agree.

At almost $200 a pop, people are only going to buying one set of instruments most likely. They've done a great job with Rock Band, supplying the DLC and I love that. The problem though is that once someone has bought Rock Band...they wont be buying the whole set again.

Blank-Mage @ May 6th 2009 5:32PM

Well, it's either the slow and embarrassing Elvis style, pumping out games until they're mocking imitations of glory days long past, or they can overdose on something in their heyday. Which was probably Guitar Hero II, actually. I'm going with slow on this one. Unless someone shoots them. Or Yoko Ono gets her own Guitar Hero game. (Not Yoko Kanno. That would be AWESOME.)

Casey @ May 6th 2009 5:35PM

The Music game industry is just like the actual Music industry. You only buy one stereo every 5 to 6 years or so, and you only by on set of overpriced plastic toys in the same timeframe.

Plus, for the average consumer the songs on Rock Band and/or Guitar Hero: WT are enough for people who are too busy working, playing other games, and the like to try and download every rock song ever just to (as mentioned above by urnautan3) "Hit Buttons on a Plastic Controller In Rhythm With Bars/Circles Coming Down a Screen"

How many times did people re-purchase a Nintendo after they beat Mario Bros. the first time? Exactly.

Jason @ May 6th 2009 5:35PM

I've got three words that explain this decline: Street Fighter Four. 2D fighters are the new guitar hero.

Dirty @ May 6th 2009 5:49PM

Your explanation has completely confused me.

jasonerin1981 @ May 6th 2009 5:41PM

Hey that's what happens when the DLC sucks.

Taylor @ May 6th 2009 5:46PM

I agree. If they released better DLC, I would probably dust off my drum set and play again. But for me, every week is another disappointment.

uncle jesse @ May 6th 2009 5:54PM

If only they would realize that when they release a couple of songs a week that they were somehow, not going to be able to please every single person with different likes and dislikes in the world, everything would be okay.

whazam1337 @ May 6th 2009 9:23PM

Dude ... GH dlc sucks hairy ballz, Rock band dlc completely destroys GH dlc and is the better game all around.

Gern @ May 6th 2009 5:55PM

Guitar Hero is a multi-million seller on the Wii. GH sells the most on Wii. The reason Rock Band is failing is because they (EA) never took the Wii seriously. First, the initial Rock Band for Wii was a poor quality product. Then EA finally put out a serious Rock Band 2 quality product, it was released on December 18th which is way too late for the Christmas season. At least Activision created some good quality Guitar Hero World Tour product last October and had plenty of time to cash in. I bought GHWT Wii myself because it was the early one out of the gate and the first Rock Band for Wii sucked. I did end up buying the Rock Band 2 disc and I really like it. RB2 is compatible with GHWT instruments, but not the old GH instruments.

Rock Band is suffering from confusion, poor marketing, poor quality for Wii, and poor synchronization of the delivery dates, and a saturation of guitar hero peripherals for which most people don't understand the compatibility.

GewurztraminerX @ May 6th 2009 5:46PM

I got Rock Band for the PS2 when it was cheap just to check it out, then got Rock Band 2 for the Wii when I realized the games were fun, then sold all that and repurchased both for the XBox when I realized I was completely obsessed.

I'm good with DLC for while.

smack @ May 6th 2009 6:01PM

I like these games and can afford them, but they need to EVOLVE.

Adding a sixth button on the guitar will not do it. They need to support a real guitar. In 5 years, nobody will want to use a plastic guitar so the experienced players won't be still playing and then neither will the new users if there are not a lot of active fans.

And the drums need real charting. RB has 4 pads and optional cymbals, but they are not charted. Drums should be as accurate as possible and seems easy to do, but I doubt it will happen.

Need to offer a path upward or this will just be a fad

Rosssas @ May 6th 2009 5:49PM

well if they would actually bother to bring out the RB2 instruments to the so called gaming 3rd world of europe maybe they would see some more profit.

Then i might instead of buying a new Telecaster i would buy RB2 guitar !

Scooter @ May 6th 2009 5:52PM

First they should get them out in North America. I haven't seen 360 controllers in a long time.

Scooter @ May 6th 2009 5:51PM

Not my fault, I buy a ton of DLC/instruments.

Mabui @ May 6th 2009 5:55PM

If the grand prize of the lottery is 10 million dollars, and I buy a ticket and lose, does that mean I've lost 10 million dollars?

Markez @ May 6th 2009 5:57PM

When the market hit 14,000 Time-Warner never hit $25 like many had forecast. Now in the mire of a bear market it knocks at that door. I don't believe anymore.

Erik Tomlinson @ May 6th 2009 6:16PM

No, it means you've lost the cost of buying the lottery ticket (say, $2).

Unfortunately the difference between the "prize" ($10 million) and the "lottery ticket" ($2) is actually the difference between "production cost" and "sale price", and since the profit isn't $10 million minus $2, it's more likely $250 minus $200, they're losing out on a lot of "lottery tickets" by having unsold inventory sitting around.

Frankly though I don't see this myself, it seems to sell pretty well around here.

I wonder what the cost of producing the DLC versus the revenue it brings in actually is (how many guys do you have to pay to turn the master tracks into a working Rock Band song?)

Efren @ May 6th 2009 6:04PM

Jeez, who wrote this article?

"As a result of this sharp downturn, EA is expecting Rock Band to lose $400 in 2009."

Four hundred bucks? I think EA's wallet can take that hit.

"Well, EA is hoping that Rock Band: The Beatles can help turn this ship around, and produce some of the cash that Rock Band 2 wasn't able to, but it would appear that the music genre is loosing its luster. Is it over-saturation?"

For the love of Zod, it's LOSING! LOSE only has one O!