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 ...
Reader Comments (70)
Posted: May 6th 2009 6:00PM Kaemon said
Of course its due to oversaturation.
RB2 gets 2 spots, bundle and game.
GH still sells GH2/A duel pack, GH3, Gh3 Bundle, GHWT, GHWT Bundle, GHM, and GH:DS and then more GH:DS. Then they have a spot in PS2 for a collection of 1,2, and 80's....
They just take up way too much space, the average person can't see through the crap of guitar hero.
RB2 gets 2 spots, bundle and game.
GH still sells GH2/A duel pack, GH3, Gh3 Bundle, GHWT, GHWT Bundle, GHM, and GH:DS and then more GH:DS. Then they have a spot in PS2 for a collection of 1,2, and 80's....
They just take up way too much space, the average person can't see through the crap of guitar hero.
Posted: May 6th 2009 7:12PM Ovy said
saturation was inevitable. RB at this point lives on in DLC, of which I already have 98 tracks personally. We've so many options as to what we can play now that it isn't necessary to buy everything on the market. I could have, for example, bought GH:WT instead of all the RB DLC I've bought. But I figured that $60 would be better spent on the DLC. I'm sure many others figured the same way.
I will buy the Beatles game, but I do not feel it is a legitimate sequel to RB2 (which harmonix has never claimed it to be). Again, I think RB lives on in DLC, as should any rhythm-based game. Sometimes a new sequel is just unnecessary.
I will buy the Beatles game, but I do not feel it is a legitimate sequel to RB2 (which harmonix has never claimed it to be). Again, I think RB lives on in DLC, as should any rhythm-based game. Sometimes a new sequel is just unnecessary.
Posted: May 6th 2009 6:13PM AirIntake said
Are they actually losing the money? Are they selling the game at a loss? Did they spend more on music rights than they're getting in sales? Or are they just under their earlier predictions? If it's the latter, then they've lost nothing.
Posted: May 6th 2009 7:09PM Stink Snake said
No, EA restated their earning and Joystiq misunderstood what that means.
What EA did is "cut the gross sales revenue it expects from its EA Partner division," this means that EA expected to make 400 Million more dollars than now it realizes it will make.
You can't lose theoretical dollars!
Reply
What EA did is "cut the gross sales revenue it expects from its EA Partner division," this means that EA expected to make 400 Million more dollars than now it realizes it will make.
You can't lose theoretical dollars!
Posted: May 6th 2009 6:15PM acme64 said
the genre's evolution is done. We went from a guitar to an entire band set. that's all you can do, unless rockband 3 is going to include a plastic string section.
Posted: May 6th 2009 6:24PM Vordus said
If they were actually more competent at selling the damned things outside of the states, maybe they'd have a more successful product!
Posted: May 6th 2009 6:28PM Hyams said
I guess people are only willing to buy a certain number of plastic toy guitars.
Who, who'd have thought.
Who, who'd have thought.
Posted: May 6th 2009 6:44PM abelpc said
My Daughter used to play both GH and RB all the time but lost interest..I don't think she has played since Feb. I always thought it was a fad myself.
Posted: May 6th 2009 7:05PM (Unverified) said
The games are too expensive. $170+ in the States, let alone the outrageous pricing in places like Australia for these games is a problem. Sure, they sold millions, and they'll continue to sell, but they need to lower their prices to grab new customers, and stick to standard designs and guarantee compatibility between games (and better synchronized shipping dates for anyone not in the US).
If the genre continues shipping out more expensive bundles, new generations of games with minor changes (selling for $60 stand-alone), and peripherals with added functionality for the sake of being different, breaking compatibility between games, then we're left with the music rhythm genre market eating itself alive, with EA and Activision trying to separate their customers for the sake of winner-take-all, when in reality, they're safer sharing the field, if no one is a clear winner (or dignified loser).
There needs to be cheaper games, standards (5 buttons, strum, wah is all you need really) for future games and 3rd party companies, complete compatibility between game controllers, better outside-the-US release dates and pricing, and an iTunes type market that encourages artists to release GH/RB DLC in sync with their albums online (ie. below the "Download Album" button for an album online, you'll see a "Download X DLC for Y" button too), and let artists release DLC content by itself, or bundled with their albums even (through some kind of promo code).
If the genre continues shipping out more expensive bundles, new generations of games with minor changes (selling for $60 stand-alone), and peripherals with added functionality for the sake of being different, breaking compatibility between games, then we're left with the music rhythm genre market eating itself alive, with EA and Activision trying to separate their customers for the sake of winner-take-all, when in reality, they're safer sharing the field, if no one is a clear winner (or dignified loser).
There needs to be cheaper games, standards (5 buttons, strum, wah is all you need really) for future games and 3rd party companies, complete compatibility between game controllers, better outside-the-US release dates and pricing, and an iTunes type market that encourages artists to release GH/RB DLC in sync with their albums online (ie. below the "Download Album" button for an album online, you'll see a "Download X DLC for Y" button too), and let artists release DLC content by itself, or bundled with their albums even (through some kind of promo code).
Posted: May 6th 2009 9:23PM (Unverified) said
Well... all i know is that i buy a psn card every week to get a few rock band songs and got rock band 1 (full bundle w.e its called special edition) and bought rock band 2 disk only and got the unlock code so i can transfer all my songs from rb1 to 2 and will NOT be buying Rb: beetles but WILL be buying the lego edition. They dont need a rock band 3 just DLC 4 evr but i would buy it if they put one out (as long as i can transfer all my 1/2 songs to that). Rock band 1 instruments all the way!!!
Posted: May 6th 2009 9:39PM (Unverified) said
EA and Activision just got way too greedy too fast.
Posted: May 6th 2009 9:51PM (Unverified) said
Activision HAS BEEN greedy after guitar hero 3 i mean ghwt come on total copy of rock band and then you got RB: beetles wich is going to fail just like GH AS and M
DLC 4 LIFE and seriously act . STOP WITH THE GH GAMES that cash cow is squirtin powder NOTHIN is left ( AND EA STOP While your at it no more band specific games just DLC DLC DLC DLC!!!!!!!!)
Reply
DLC 4 LIFE and seriously act . STOP WITH THE GH GAMES that cash cow is squirtin powder NOTHIN is left ( AND EA STOP While your at it no more band specific games just DLC DLC DLC DLC!!!!!!!!)
Posted: May 6th 2009 9:42PM derdaim said
I will buy Rock Band 2 immediately when they release it on my platform (PS2) in my region (PAL) with all new Instruments.
But I guess they don't want my money...
So theres no oversaturation here. I'm more like starving, because I'm still playing Guitar Hero 3 because EA/Harmonix obviously don't give a shit...
But I guess they don't want my money...
So theres no oversaturation here. I'm more like starving, because I'm still playing Guitar Hero 3 because EA/Harmonix obviously don't give a shit...
Posted: May 7th 2009 12:17AM (Unverified) said
Time to get a ps3 so u can order games from all around the world
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Posted: May 11th 2009 9:43PM (Unverified) said
400 million huh? how can you lose what you never had?
Posted: May 7th 2009 8:17AM mendo said
Hey David, EA willnot lose 400m, they think that they're going to earn 400m LESS than last year. Which is VERY different than saying that they'll lose 400m.
Please correct the article :)
Please correct the article :)
Posted: May 7th 2009 9:12AM Gemini Ace said
So, relying on dlc isn't working? Is Guitar Hero going to post these kinds of losses? Personally I prefer Rock Band, but I can't buy new tracks every week just to make sure MTV and EA have cash on hand.
Posted: May 7th 2009 11:15PM (Unverified) said
Totally agree with this, this has lost all its luster now. I hope EA comes up with a nice strategy to get over the losses.
Posted: May 23rd 2009 8:26PM (Unverified) said
I hope this means the bundle prices will go down that would be insnely great
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