In a recent interview with Bloomberg, Electronic Arts CEO John Riccitiello revealed a core attribute that the megapublisher is prioritizing in the coming years: Thriftiness. He explained the company has no interest in pursuing more multi-million dollar acquisitions for now -- rather, he said the company will focus on better integrating some of the major casual game developers it acquired over the past year, including Playfish, the Facebook game developer EA bought out for $300 million (with $100 million in potential bonuses) last November.
When pressed on whether the publisher was considering purchasing the recently let-go Rock Band developer Harmonix, Riccitiello responded that such an acquisition would "look like I'm doubling down on yesterday." He added, "I'm sure some smart investor will buy the business feeling that they can catch a falling knife, but more people have been cut trying to catch falling knives than have benefitted from getting the timing exactly right." That seems awfully harsh, but we suppose it's not quite as harsh as if EA were to buy the developer then dissolve it a few years later.
Reader Comments (45)
Posted: Nov 30th 2010 10:51AM Teancum said
The guy's right though. As impressed as I am with Rock Band 3, people are sick of buying new instruments every year.
Posted: Nov 30th 2010 11:03AM Lucky The Fox said
@Teancum
I still don't understand this argument. My original Rock Band Stratocaster still works just fine with all band games.
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I still don't understand this argument. My original Rock Band Stratocaster still works just fine with all band games.
Posted: Nov 30th 2010 10:51AM TheBatman4141 said
Congrats Bobby K, you killed the music game genre and Tony Hawk in the same year!
Posted: Nov 30th 2010 11:07AM Uphillbothways said
@TheBatman4141
I'm not entirely sure how Kotick relates to this post. Harmonix was a subsidiary of MTV Games, not of Activision. Are you perhaps confusing Harmonix with Red Octane?
Harmonix / MTV Games are responsible for Rock Band.
Red Octane / Activision (Kotick) are responsible for the most recent [Music] Hero games.
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I'm not entirely sure how Kotick relates to this post. Harmonix was a subsidiary of MTV Games, not of Activision. Are you perhaps confusing Harmonix with Red Octane?
Harmonix / MTV Games are responsible for Rock Band.
Red Octane / Activision (Kotick) are responsible for the most recent [Music] Hero games.
Posted: Nov 30th 2010 11:11AM FriedConsole said
@Uphillbothways
Some people think Activision killed music games but it reality it would have died just on it is own. The music games fad of 2008 is over and the games will never be as popular is they once were. Both Rock Band and Guitar Hero franchises were properly milked to cash in on the trend and both are scaling back as the fad is dying.
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Some people think Activision killed music games but it reality it would have died just on it is own. The music games fad of 2008 is over and the games will never be as popular is they once were. Both Rock Band and Guitar Hero franchises were properly milked to cash in on the trend and both are scaling back as the fad is dying.
Posted: Nov 30th 2010 11:15AM Uphillbothways said
@Uphillbothways
Now that I've thought of it, I suppose that you might mean that Kotick is responsible for the death of music games because of his oversaturation of the genre, and Harmonix is an unfortunate casualty.
In that case, I'd agree but would argue that he's been steadily beating it to death since 2008.
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Now that I've thought of it, I suppose that you might mean that Kotick is responsible for the death of music games because of his oversaturation of the genre, and Harmonix is an unfortunate casualty.
In that case, I'd agree but would argue that he's been steadily beating it to death since 2008.
Posted: Nov 30th 2010 11:16AM Uphillbothways said
@dudes113
Thanks for the clarification. I agree, but would go further and say that Kotick has been steadily beating the genre to death since 2008.
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Thanks for the clarification. I agree, but would go further and say that Kotick has been steadily beating the genre to death since 2008.
Posted: Nov 30th 2010 11:19AM Uphillbothways said
@Uphillbothways
Shit.... I thought that first reply didn't go through.... What I'd give for the ability to edit / delete comments. I'll be back tomorrow to assess my downvotes, I guess.
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Shit.... I thought that first reply didn't go through.... What I'd give for the ability to edit / delete comments. I'll be back tomorrow to assess my downvotes, I guess.
Posted: Nov 30th 2010 1:59PM onlysublime said
@dudes113 doesn't account for the fact that GH games sold better. let's face it, this, like any other genre will naturally peak, fade, and become a niche. same thing happened to ddr. people get tired, it goes away until a new generation emerges. that new generation is dance central.
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Posted: Nov 30th 2010 2:12PM TraceurRyuk Prepping for LBP2 said
I'm with FriedConsole. Whether you guys deny it or not, Rock Band 1 is the same exact game as Rock Band 3 but with different songs. And that's how average consumers see it too. You guys can bash Activision, Call of Duty, Guitar Hero, etc all you want. But they are not the only one's releasing the same game every year. It happens all over with every publisher, but you people fail to realize that. Back on topic of music games, yes, it was a fad. Just like Wii Fit. There is only so much you can do before people get bored.
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Posted: Nov 30th 2010 2:48PM dudes113 said
@onlysublime
No, I definitely agree, the music genre is just a fad. I also do admit that GH sold more. While the gaming community would probably agree that RB is the better of the two (at least I hope so) the main stream community sees GH as the original and most popular, and also the cheapest with the focus on the guitar as opposed to the whole band.
And if Dance Central is the new thing, I'm growing older than I thought.
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No, I definitely agree, the music genre is just a fad. I also do admit that GH sold more. While the gaming community would probably agree that RB is the better of the two (at least I hope so) the main stream community sees GH as the original and most popular, and also the cheapest with the focus on the guitar as opposed to the whole band.
And if Dance Central is the new thing, I'm growing older than I thought.
Posted: Nov 30th 2010 3:41PM jsx92 said
You guys will travel far out on any limb to relate something to Bobby Kotick. He's the CEO of a company who has nothing to do with this.
Oh yeah, and for the record, GH drum charts are 1:1 and RB "Pro" charts are still "sonically" mapped. RB3 was a let down for this drummer, so I won't be sad t see Guitar Hero the only kid on the block next year.
More people to play online with for GH7. Eat it, haters.
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Oh yeah, and for the record, GH drum charts are 1:1 and RB "Pro" charts are still "sonically" mapped. RB3 was a let down for this drummer, so I won't be sad t see Guitar Hero the only kid on the block next year.
More people to play online with for GH7. Eat it, haters.
Posted: Nov 30th 2010 10:52AM TheBatman4141 said
Congrats Bobby K, you killed the music game genre and Tony Hawk in the same year!
Posted: Nov 30th 2010 11:05AM New Waster said
EA announce they have run out of things to buy.
Posted: Nov 30th 2010 11:16AM Jawmuncher said
All I know is I want another Dance Central.
What if Activision bought back Harmonix, how weird would that be.
What if Activision bought back Harmonix, how weird would that be.
Posted: Nov 30th 2010 11:20AM milliniar said
my off the wall prediction SquareEnix will buy harmonix.
Posted: Nov 30th 2010 11:28AM Joeybeast said
Poor Harmonix. I was hoping EA would buy them.
Who owns the rights to Dance Central?
Who owns the rights to Dance Central?
Posted: Nov 30th 2010 12:08PM GMUHistorian said
@Joeybeast
Harmonix developed Dance Central so they own the rights to it. I guess Microsoft could buy the rights if Harmonix closes but Microsoft's steadily been getting out of the developer business over the past few years. I think they only own 343 right now and that studio's going to be busy with the Halo franchise.
I just don't see room for Rock Band, Guitar Hero, DJ Hero and Dance Central in the market. I know DJ/DC are different types of games but at their core they're still music games. IMO DC's future is still up in the air because we don't yet know if Kinect is going to be a long term success or if it's going to end up gathering dust like many people's Wii's do. IMO DC is probably the "Wii Sports" for Kinect that will get people playing even if they don't use it for much else.
I think the music genre will survive but I'm not sure all of the games in it will survive. Gamers seemingly have moved on.
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Harmonix developed Dance Central so they own the rights to it. I guess Microsoft could buy the rights if Harmonix closes but Microsoft's steadily been getting out of the developer business over the past few years. I think they only own 343 right now and that studio's going to be busy with the Halo franchise.
I just don't see room for Rock Band, Guitar Hero, DJ Hero and Dance Central in the market. I know DJ/DC are different types of games but at their core they're still music games. IMO DC's future is still up in the air because we don't yet know if Kinect is going to be a long term success or if it's going to end up gathering dust like many people's Wii's do. IMO DC is probably the "Wii Sports" for Kinect that will get people playing even if they don't use it for much else.
I think the music genre will survive but I'm not sure all of the games in it will survive. Gamers seemingly have moved on.
Posted: Nov 30th 2010 11:35AM thecotanak said
Bizarre would buy Harmonix. Wait.. what?
Posted: Nov 30th 2010 11:36AM thecotanak said
Bizarre would buy Harmonix. Wait.. what?
Posted: Nov 30th 2010 11:39AM wcarnation said
Ever notice how whenever someone calls a genre a "fad" it's almost always people who never play it?
The issue people are bringing up is that Activision saturated the genre's market and burned the fuel out way too fast. Rock Band has been being a solid, innovative and well designed series from inception, and it's getting swept away with the sewer tide.
Not to mention Rock Band 1 and Rock Band 2 lived for an eternity, and 3 was build just the same and many RB players (myself included) were looking forward to enjoying RB3 for a nice long time. Not even a month in and it's put into jeopardy. Kinda sucks.
Rock Band shouldn't suffer for Activisions transgressions.
The issue people are bringing up is that Activision saturated the genre's market and burned the fuel out way too fast. Rock Band has been being a solid, innovative and well designed series from inception, and it's getting swept away with the sewer tide.
Not to mention Rock Band 1 and Rock Band 2 lived for an eternity, and 3 was build just the same and many RB players (myself included) were looking forward to enjoying RB3 for a nice long time. Not even a month in and it's put into jeopardy. Kinda sucks.
Rock Band shouldn't suffer for Activisions transgressions.
Posted: Nov 30th 2010 11:43AM Chilly P slapperonlyblogspotcom said
@wcarnation
I played the crap out of music games. I own Guitar Hero II, III, World Tour, 5, and Van Halen and I own Rock Band and Beatles Rock Band.
It was still a fad.
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I played the crap out of music games. I own Guitar Hero II, III, World Tour, 5, and Van Halen and I own Rock Band and Beatles Rock Band.
It was still a fad.
Posted: Nov 30th 2010 12:28PM wcarnation said
@Chilly P slapperonlyblogspotcom as much of a fad as videogames themselves.
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Posted: Nov 30th 2010 1:04PM FriedConsole said
@wcarnation
I played and loved a bunch of the music games.
Fad (fd) n. - A fashion that is taken up with great enthusiasm for a brief period of time; a craze.
Seems to fit the definition. People don't want to admit they participated in a fad. I have participated in many fads through out the years going back to Transformers in the 80's. Nothing wrong with it. I guess people don't want to admit that we are all really just sheep.
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I played and loved a bunch of the music games.
Fad (fd) n. - A fashion that is taken up with great enthusiasm for a brief period of time; a craze.
Seems to fit the definition. People don't want to admit they participated in a fad. I have participated in many fads through out the years going back to Transformers in the 80's. Nothing wrong with it. I guess people don't want to admit that we are all really just sheep.
Posted: Dec 1st 2010 12:38AM AnonymousHippopotamus said
@FriedConsole i've been playing harmonix music games since way before guitar hero. they are fantastic developers and i still have a blast playing frequency, amplitude, gh/gh2, and the rock band games. following good developers who have a knack for merging music with games is not a fad. only the fakes and copycats who can't innovate buy someone's work and try to cash in. i'll still be following harmonix into the future.
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Posted: Nov 30th 2010 11:44AM Hoops said
Equating buying Harmonix to catching a falling knife is Harsh. Fine, it may be time to put the Guitar games on hold, but Harmonix i s still an incredibly talented devleoper who makes great games. They would be worth a purchase to keep getting revenue from the Rockband store (though side note, since RB3 isn't selling well, will there be pressure to make new songs compatible with RB1 and 2 again since that's a much larger install base?) as well as going forward with Dance Central and *gasp* New properties!!?
Posted: Nov 30th 2010 12:19PM Elmoogle said
@Hoops
Agreed here. Harmonix is not a once-trick pony. They're a hugely talented and creative studio. It's a bit disgusting to see EA and Viacom discarding them like this, but hopefully they'll get picked up by a publisher who actually appreciates talent rather than just giving it lip service while continuing to whip the sequel mule.
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Agreed here. Harmonix is not a once-trick pony. They're a hugely talented and creative studio. It's a bit disgusting to see EA and Viacom discarding them like this, but hopefully they'll get picked up by a publisher who actually appreciates talent rather than just giving it lip service while continuing to whip the sequel mule.
Posted: Nov 30th 2010 3:28PM Brother Unit No 4 said
@Hoops
It's actually not that bad of an analogy. Buying out a developer is risky, especially if their products underperform, which I'm guessing is the case with Harmonix. But seriously Viacom dumping Harmonix was kinda silly in my mind. Dance Central is probably set to be the Just Dance of this holiday season. Meaning it'll sell a crap ton.
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It's actually not that bad of an analogy. Buying out a developer is risky, especially if their products underperform, which I'm guessing is the case with Harmonix. But seriously Viacom dumping Harmonix was kinda silly in my mind. Dance Central is probably set to be the Just Dance of this holiday season. Meaning it'll sell a crap ton.
Posted: Nov 30th 2010 11:52AM libregkd said
Now we can only hope Sony will buy them out and make a true sequel to Frequency and Amplitude.
...A man can dream right?
...A man can dream right?
Posted: Nov 30th 2010 12:00PM Hawaii Jeff said
Harmonix made a metric crapton of $$$ for EA, and now they badmouth them like a whore who's losing their looks.
Posted: Nov 30th 2010 12:29PM XaiaX said
@Hawaii Jeff
How much of this is EA's poor performance with Medal of Honor and Dante's Inferno leaving them without the cash to make any acquisitions? This could just be a case of sour grapes.
--
Music games may be a "fad", but they still make new DDR games every damn year. They just make them with the expectation that they're selling into a niche market. Given that the real strength of Rock Band in particular is the DLC catalogue, it makes the most sense to stick with that, and push that market more than anything. What they should do is release a version of "Rock Band" that is basically just a DLC engine. Hell, put it up on XBLA/PSN/Wii store for $0, and just include the Harmonix band free stuff to get people started. That will get the newer DLC engine in place so people can start buying the RB3 tracks without any significant outlay on their part, since "number of people who can buy DLC" is the biggest driver for Harmonix profits.
And that's the thing, it's not like Harmonix isn't profitable. It's just that they aren't *as profitable* as Viacom wants them to be.
The best, but saddest, would probably be if Activision re-bought them, which would at least consolidate the music licensing so we wouldn't have these dumb problems with band exclusivity. Then they could release Guitar Hero: Rock Band which would allow you to pick your gem style and import all your old DLC for every game.
The question there is if Kotick could bother to pull enough Franklins off his toilet paper roll to make the acquisition.
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How much of this is EA's poor performance with Medal of Honor and Dante's Inferno leaving them without the cash to make any acquisitions? This could just be a case of sour grapes.
--
Music games may be a "fad", but they still make new DDR games every damn year. They just make them with the expectation that they're selling into a niche market. Given that the real strength of Rock Band in particular is the DLC catalogue, it makes the most sense to stick with that, and push that market more than anything. What they should do is release a version of "Rock Band" that is basically just a DLC engine. Hell, put it up on XBLA/PSN/Wii store for $0, and just include the Harmonix band free stuff to get people started. That will get the newer DLC engine in place so people can start buying the RB3 tracks without any significant outlay on their part, since "number of people who can buy DLC" is the biggest driver for Harmonix profits.
And that's the thing, it's not like Harmonix isn't profitable. It's just that they aren't *as profitable* as Viacom wants them to be.
The best, but saddest, would probably be if Activision re-bought them, which would at least consolidate the music licensing so we wouldn't have these dumb problems with band exclusivity. Then they could release Guitar Hero: Rock Band which would allow you to pick your gem style and import all your old DLC for every game.
The question there is if Kotick could bother to pull enough Franklins off his toilet paper roll to make the acquisition.
Posted: Nov 30th 2010 12:39PM Mr Khan said
EA learned their lesson from Pandemic, i see.
Posted: Nov 30th 2010 12:40PM Marco le Polo said
"That seems awfully harsh, but we suppose it's not quite as harsh as if EA were to buy the developer then dissolve it a few years later."
Oooooooooooooooooooooh!!!!!!!!!!!!!!!!!
Oooooooooooooooooooooh!!!!!!!!!!!!!!!!!
Posted: Nov 30th 2010 2:04PM onlysublime said
buying harmonix would be great for either MS or Sony. for MS, it would continue the pipeline for Dance Central and their Lips series could be reinvigorated and expanded. for Sony, their Singstar could use some new energy.
Posted: Nov 30th 2010 5:04PM wcarnation said
@onlysublime As a PS3 Rock Band player,
Please, no.
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Please, no.
Posted: Nov 30th 2010 10:50PM Crayola Q Pants ESQ said
Harmonix is only a falling knife if Viacom is charging ludicrous amounts of cashola for someone to catch them. The music genre isn't the amazing new thing it once was, but money it will still make. Just not the millions upon millions that people were hoping would continue.
Whether or not the Guitar Hero/Rock Band games can still exist as a smaller genre (although I would be happy just having Rock Band 3 and DLC from here on out) is something for the accountants though.
I'm imagining that ridonkulous licensing fees from artists who also thought the genre was rolling in millions didn't help.
Whether or not the Guitar Hero/Rock Band games can still exist as a smaller genre (although I would be happy just having Rock Band 3 and DLC from here on out) is something for the accountants though.
I'm imagining that ridonkulous licensing fees from artists who also thought the genre was rolling in millions didn't help.
Posted: Dec 1st 2010 11:20PM benheck said
Also don't forget, EA is spending insane amounts of money on The Old Republic, yet another MMO that's not called World of Warcraft so probably won't succeed.








