Rhythm Gaming Saturation Point?

Rhythm Gaming is all the rage, or is it? Turns out Guitar Hero: World Tour didn’t meet or exceed the figures they hit with Guitar Hero III. Where GH3 brought in $115 million in the first week, GHWT brought in $67 million in the same time frame.

Why?

There are plenty of factors that could cut down the sales units, considering those that can purchase Guitar Hero World Tour don’t have to purchase additional instruments to play the game like they played GH3.

  • Rock Band 2: This game arrived before Guitar Hero 3 and folks went for this game instead because it was first to launch. Some gamers have to make a choice on which to purchase because they can’t buy both.
  • Hot Games: Although Rhythm gaming can be fun, a lot of great games are arriving this season so gamers have to make some big decisions.
  • Economics: The economy isn’t exactly thriving right now and retail outlets are already predicting less than stellar numbers.
  • Saturation: Since the original Guitar Hero game, we’ve had a number of titles from Activision including their Aerosmith edition and Harmonix pulling out Rock Band and Rock Band 2. There is talk of a Hendrix version and a Metallic release – how much is too much?

We know people love charts, so here is another to toss at you via Kotaku:

Guitar Hero World Tour Sales, via Kotaku

The break down from Guitar Hero 3 to World Tour is obvious, also apparent is the shift in console when buying into the rhythm gaming franchises. The Wii has started taking more market share, odd considering the DLC isn’t there, and the PS3 is showing its lackluster sales of the console by growing in proportion but not excelling to grab huge share (PS3 fanboys attack!). Sony kicked ass by taking control of the share using their PlayStation 2 with Guitar Hero 3, but has lost that lead for the World Tour.

Will these lower sales figure change the future roadmap for Activision in their Guitar Hero franchise or are they satisfied taking home $67 million in the first week of the launch. That is still a lot of money and probably doesn’t even consider any money they could (or will) potentially make on the World Tour hardware.

Luckily, the rhythm gaming content doesn’t get old with age, it just gets more classic. No doubt Guitar Hero World Tour will be landing in homes over the holidays and into 2009.

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Sony, Next Big Software Company?Sony, Next Big Software Company?

Every day we’re hearing of a company running through a round of layoffs or going out of business, it’s really not a happy time. Sony is not immune to the economic troubles either. Sony is talking restructuring and that involves a potential head count reduction of 16,000 jobs due to plant closings.

floppyThis leaves Sony with some hard decisions. Restructuring can mean drastic changes that effect all their product lines. The PlayStation 3 isn’t currently a shining example of high profit margins. The console needs time to reduce its overall cost, chip sizes and bring profitability. Is it in danger?

“Sony’s not in a position to halt all domestic production but it has to do something that drastic,” said Mitsushige Akino, chief fund manager at Ichiyoshi Investment Management. “If it announces plans to move production overseas while keeping only planning and development functions in Japan, that would be a positive.” (gamestooge)

The yen is losing value in our global economy making it more difficult to export the product and build any type of profitability plan. “A source said this month the company will likely suffer an annual operating loss of about $1.1 billion, its first such loss in 14 years” (news.yahoo.com) All this noise is making CEO Howard Stringer contemplate Sony’s involvement as a “software only” company, making us recall the changes at SEGA to this same result.

The Financial Times reported Sony will unveil details of its restructuring steps on Wednesday or Thursday. It said Chief Executive Howard Stringer was meeting with resistance from some executives to shifting the company’s focus to software from hardware and cutting jobs in Japan. (news.yahoo.com)

Is this just a case of a fearful executive trying to lay plans for a more stable future? Software is easier to develop, pays for itself quickly and becomes pure profit as it ages. Hardware requires constant upkeep at manufacturing facilities, chip reductions and a boat load of quality planning for first shipment. Would Sony go full software?

Let’s face it, Sony isn’t SEGA, they’ve been developing hardware for consumers since anyone can remember and they’ve been doing it with quality and market penetration. It seems absurd to think they’d forgo hardware designs in replacement of a full software solution to the problem. In addition, Sony has already invested a large amount of cash into seeing PS3 through it’s 10-year plan and letting that die now is realizing a huge loss on investment.

If Sony pushes through the economic and maintenance course, the PS3 will become highly profitable, much like the PS2 last generation (with a slower ramp up for sales). Even if they break even after ten years it seems a lot better than throwing all the effort away.

Perhaps Howard Stringer is talking “software” for the next generation home console? You think Sony will create a PlayStation 4?