BREAKING: Viacom to Sell Harmonix
Details are still scant right now, but according to Viacom’s third quarter financial 10-Q filing, Viacom will be selling Rock Band maker Harmonix.
Watch this space as we update with more info.
UPDATE 1: According to this link (via Adam in the comments), Viacom CEO Philippe Dauman commented:
Our decision to exit this business strategy is to focus on what we do best, and that’s creating world class entertainment. The console games business requires expertise we don’t have. For us, this is all about focus.
He also comments that he expects the sale of Harmonix to be completed “expeditiously,” though he offered no specifics on price or the prospective buyers the company is in negotiations with.
UPDATE 2: John Drake let me know that there is a thread over in the RockBand.com official forums that is reserved for discussing what is going on with this. He writes the following:
Hi Guys:
We’ve seen a lot of questions pop up in response to Viacom’s statements this morning regarding their intention to sell Harmonix. We’ve posted this thread to respond to those questions. Please keep your forum conversations regarding this matter in this thread. We’ll check in throughout the day as we’re able.
This morning’s announcement does not affect the ongoing work at the studio as we continue to support our existing franchises, Rock Band and Dance Central. As stated earlier, Viacom is in discussions with several potential buyers and will continue to fully support the business until a sale is completed.
If you have additional questions or concerns, please post them in this thread. If you’re a member of the media with inquiry, you can reach out to us at press@harmonixmusic.com. (Please don’t email this address if you’re not from a press outlet).
UPDATE 3: John updated the RockBand.com forum post with this:
Regarding potential publishers, it’s premature to discuss specific publishers at this time, though we look forward to working with Viacom to find the best home for our studio. Please keep speculation about that to a minimum in this conversation.
Many of you have asked about DLC. To be clear, our earlier statement that we will continue to support our existing franchises holds true and work at the studio is not affected by this announcement. RB DLC will continue unabated. We’re excited to confirm that The BeeGees are our next DLC pack.
Some of you have been chiming in about our different partners and what this announcement means for [the Fender Squier/Mad Catz Hardware/EA Distribution]. Those partnerships are unaffected by this announcement with regards to existing titles.
Most importantly, the Rock Band and Dance Central will continue to be worked on at Harmonix for the foreseeable future. We’re not leaving them behind.
More to come!
NOTE: If you find anything else that should be included in this post, please use the CONTACT US form at the top so I can update promptly. Thanks!
[Forbes]
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They’ve been sold and bought before, haven’t they? Just the way business works… Hopefully nothing to worry about
Jonathan Reply:
November 11th, 2010 at 8:11 am
Depends who HMX is sold too, this sucks If they are sold to someone who would ruin Rock Band…..Dare I say, Activision. God I hope not. Would we lose MTV aswell, that would not be good.
killer_roach Reply:
November 11th, 2010 at 8:40 am
Rather Activision than Microsoft, who has also been rumored to be interested… after all, first order of business of a Microsoft-owned Harmonix would be to make all their titles 360-exclusive.
BravoGangUS Reply:
November 11th, 2010 at 9:11 am
I don’t even want to THINK of Microsoft buying Harmonix. That would be worse than Activision buying them, imo.
KB Reply:
November 11th, 2010 at 9:15 am
I don’t think that’s a fair assumption. Despite being sales/business oriented, Microsoft is generally known for having good relations with third party developers (their relationship with Bungie is a great example).
Microsoft is also a much bigger name than Viacom, I’m sure having their resources, Harmonix would basically have whatever music they wanted at their disposal.
Max Reply:
November 11th, 2010 at 11:28 am
Aside from Harmonix games becoming 360 exclusives, I don’t see a downside to Microsoft purchasing them. As a 360 owner, that wouldn’t bother me but it would suck for everyone playing Rock Band on the PS3 and Wii.
Whizzer Reply:
November 11th, 2010 at 9:11 am
Rather good quality games and content on one console than crap on all of them. That’s what Guitar Hero is here for after all!
killer_roach Reply:
November 11th, 2010 at 9:33 am
Tell that to people with a 1600-song library on the PS3.
Bishop Reply:
November 11th, 2010 at 10:03 am
Or the Wii :,(
Aw Reply:
November 11th, 2010 at 9:55 am
If Activision buys them, I’m not buying any more Harmonix games. If Microsoft buys them, I’m not buying any more Harmonix games.
I hope EA buys them. Apparently Rock Band 3/an upcoming Harmonix game will be the last EA-distributed title for the developer. I just hope that means EA is thinking about changing roles and becoming the publisher instead of EA is losing interest in Harmonix.
Without MTV or EA, things don’t exactly look optimistic for Harmonix/Rock Band. I’m hoping for the best, but I won’t be surprised with the worst.
rodz Reply:
November 11th, 2010 at 12:47 pm
Please be Sony, just for the laugh
Ben Reply:
November 11th, 2010 at 1:39 pm
yeah, shows it’s a joke, Sony is so severely in financial crisis that there would be no way they could think of buying into HMX
killer_roach Reply:
November 11th, 2010 at 2:15 pm
Financial crisis? They’re currently profitable!
That being said, their market cap has been decimated in recent years (as has been pointed out elsewhere, Apple has more corporate cash on hand than Sony is worth). Sony has more than enough ability to borrow to make most any acquisition happen if they wanted to, but I think Sony probably considers Harmonix as unappealing to hold on to as Viacom does (namely, the fact that they are extremely capital-intensive).
Ben Reply:
November 11th, 2010 at 5:51 pm
maybe the playstation branch is, but i have heard that other ventures (like movies) have been severely cut back due to financial troubles. The biggest movie franchise that i’ve heard taken the cut (and the reason for which the next installment is going to be a reboot) is “Spider-man”. that’s just what i’ve read though.
killer_roach Reply:
November 11th, 2010 at 6:11 pm
@Ben: Keep in mind that underperforming != losing money. Film studios perpetually juggle releases, largely due to the incredible cash outlays that blockbuster titles require. In Sony’s case, it’s not so much that they can’t pull them off from their financial position, but that it’s unwise to, considering how their bottom line has been hit by the global economic downturn, put that much top-line financial risk on the table all at once.
D:
WTF No ;_; if Activision buys them….;_______________;
Jonathan Reply:
November 11th, 2010 at 8:11 am
Lets just hope and pray that doesn’t happen
Ben Reply:
November 11th, 2010 at 1:41 pm
you know i dislike Activision as much as the next guy, but i don’t necessarily think it would be all that bad, it would open the door to some DLC that has been exclusive, and might also give Activision a reason to put GH to rest.
Whoa.
Well if they aren’t ALSO SELLING MTV…
Harmonix is going to have a MUCH worse time licensing music, I’m afraid. Or at least, getting access to that MTV pipeline (I can’t imagine that MTV Games/MTV as parent companies wasn’t helping out with that).
This sucks.
yeah if activision buys them all bets are off RB3 and Dance Central will be the last things I buy from HMX I refuse to buy ANYTHING from activision or neversoft Viacom if you are listening you are a fool to sell harmionix but then again your suits dont have a single clue now do they?
Damn IT!!! They couldn’t even wait until next year to do this. This could be really bad for DLC.
“EA Boston.”
Seriously, this is a no-brainer.
AdamWM629 Reply:
November 11th, 2010 at 8:17 am
Ooooohhhh. Great idea. Although other posts about losing the MTV connection are a bit worrysome.
LoopyChew Reply:
November 11th, 2010 at 8:27 am
Fingers crossed.
lol I like how people’s first priority is “NOOO NOT ACTIVISION”
LoopyChew Reply:
November 11th, 2010 at 8:30 am
Then again, Activision hasn’t had a sterling reputation when it comes to treating developers or franchises well. Look at Neversoft and RedOctane, the closest thing we have to a precedent we have for Activision’s treatment of their music game developers.
KB Reply:
November 11th, 2010 at 9:18 am
I think Neversoft is the best example. They’ve been making games for Activision for years and years. And though they’ve never exactly been a darling with the critics, they’re usually pretty successful. Activision sort of threw the Guitar Hero franchise at them and now the studio is being downsized with the very good likelihood that their doors will be closed forever soon.
FrankieB Reply:
November 11th, 2010 at 12:34 pm
Where do people get the idea that Neversoft is shutting down? They downsized their charters because they weren’t needed anymore, you know, the people who put circles to notes. They didn’t do anything else so they’re gone. Neversoft is making a new game now and is not shutting down. I have no idea where people get this insane news from.
comp Reply:
November 11th, 2010 at 1:54 pm
I think it’s because they still want good games.
If Activision buys them back, Rock Band as we know it is over.
rodz Reply:
November 11th, 2010 at 12:49 pm
Activision, Microsoft, Sony… any of those would be the end of RB as we know it
Yeah, I’ll echo the others in here that we should all pray that Activision doesn’t buy them. That would be bad, very bad.
toymachine Reply:
November 11th, 2010 at 8:29 am
Yeah it would suck if Rock Band was properly advertised in Europe!
Alright I’m done- I understand people’s concerns about Bobby stepping in obviously but that needs to be said.
I’m not a fan of Activision but with a merge of GH and Rock Band, they’d bring so much more music to the game. If we combined all of the games so far we’d be over 3000 songs easily. As long as HMX is still making the games, they won’t be any different, it will just say Activision on the cover (I hope)
There was another update at http://paidcontent.org/article/419-viacoms-dauman-harmonix-sale-is-about-focus-digital-dollars-not-dimes/
“Viacom (NYSE: VIA) is currently in talks with several buyers for game developer Harmonix, said Philippe Dauman, Viacom’s president and CEO, at the start of the company’s Q3 earnings call. He didn’t say anything about the poor sales that have plagued the unit, since hitting a high with its release of its Beatles Rock Band game late last year. “Our decision to exit this business strategy is to focus on what we do best, and that’s creating world class entertainment,” he said. “The console games business requires expertise we don’t have. For us, this is all about focus.” ”
. . .
“That said, he expects the sale of Harmonix to be completed “expeditiously,” though Dauman offered no specifics on price or the prospective buyers the company is in negotiations with. “
Valhalla Reply:
November 11th, 2010 at 9:06 am
I can’t even believe this. Hello? The game JUST came out. The asking price is basically $130 + tax. People will be a little less inclined to run out and buy it the first week, but rest assured, IT’S numero uno on their Christmas list!
Maybe they think Christmas sales will flop and they want to sell before that happens, but I am willing to bet that they are dead wrong.
Every kid and adult in America who likes rhythm games is clamoring for this thing, I assure you.
Do I have it yet? Nope. Can’t afford it until my birthday (next week). After that I WILL be getting the real guitar, and a keyboard stand, and a crapload of DLC (Doors, Bon Jovi, Billy Joel for sure)
VERY dumb move, Viacom. Morons…
Adam Reply:
November 11th, 2010 at 9:15 am
I can’t imagine it’s a kneejerk reaction to first week sales of Rock Band 3. Something like this takes a while to get in motion, so Viacom has to have been heading down this road for some time now. I’m sure they were going to sell off Harmonix no matter what.
Valhalla Reply:
November 11th, 2010 at 11:27 am
You are of course, right.
However, did anybody realize that RB3 was going to be as awesome as it is? Every single one of my gaming friends is planning on buying this, and if there’s anybody who doesn’t have a game system yet that I talk to, I evangelize the crap out of it, such that after we’re done talking, they feel compelled to get a game system (Xbox 360… shameless plug), and get Rock Band 3 for Christmas.
If the sale isn’t completed by Christmas, I have a feeling Viacom might say, “Um, guys, let’s wait awhile before we do anything hasty here.”
With the existing new DLC and The BeeGees next week, it’s the first time I’ve wanted several songs EVERY week…
argyle Reply:
November 13th, 2010 at 11:47 am
I don’t think it’s awesome and I bought it day one. I’d call this the worst game they ever released. It’s not just full of bugs but they changed so many things that weren’t broken. Pro mode and a keyboard can’t save it. The only reason I play it is because I can’t use the new dlc with RB2. And why are you evangelizing something you don’t even own?
It wasn’t hard to see this coming. Viacom had to stop the bleeding.
What I’m wondering is will Harmonix be able to take the Rock Band franchise with them or are we going to see them once again divorced from one of their creations.
KB Reply:
November 11th, 2010 at 8:51 am
This is absolutely terrifying to think about.
Aw Reply:
November 11th, 2010 at 10:05 am
Hopefully they’ll be able to hold onto the franchise. It sounds like MTV Games wants to get out of the video games business entirely, so I don’t know if they would actually do anything with Rock Band if they owned the IP. DLC would just stop coming out and Rock Band 3 would be the last in the series.
Oh. Unless, of course, the sell the IP for Rock Band to someone else.
This is absolutely terrifying to think about.
Shmoo Reply:
November 11th, 2010 at 10:44 am
Hmmm. A sale could mean so, so many things.
Apple – they’d probably get much more favorable licensing terms, which would make the platform more profitable/viable long term. Potentially interesting integration and cost promotion via iTunes, such as getting a song download and DLC download in one transaction or a value add in either direction. Apple ownership could seriously mess with console availability in myriad ways.
Microsoft – Could be fantastic for Xbox owners and MS carries a lot of weight. Same positive synergy potential as Apple, but on a smaller scale (Zune). However, PS3/Wii owners would be absolutely hosed. This scenario shines a huge spotlight on Harmonix not controlling DLC distribution centrally – something not likely to change in the foreseeable future.
EA – There’s already a relationship there for distribution. If they had an EA Partners deal it could work rather well and mean business as usual. EA’s position in the industry could counterbalance any loss of MTVN marketing synergy. I never saw the MTV tie-in paying off in big ways.
Activision – This, to me, would be the most extreme scenario. Either extremely good or extremely bad. We all know the worst case: Activision buys Harmonix, shutters Rock Band thereby eliminating their only competition in the music game market, farms out GH development on the cheap and moves enough units of the only game going to make themselves feel smart.
The best case, if Activision is involved: We get Guitar Hero: Rock Band. Harmonix takes over development and focuses on one platform release per year for consoles + portable/mobile/social and maybe a band specific title here and there. Music licensing becomes more favorable because it’s Activision’s terms or the publishers make no money.
Potentially even better is that GH:RB launches next fall, licensing contracts are merged, the era of song/artist exclusives dies on the spot and GH:RB contains the ability to import most Guitar Hero and Rock Band disc and DLC content.
Then again, Activision is Activision so which way do you really think this would go?
Harmonix itself – Perhaps Harmonix has enough cash from Viacom and a willingness to buy back full autonomy to partner as they see fit (or not). Certainly there are risks. Harmonix are long-time, dedicated developers with a mission to expand the accessibility of music. They don’t necessarily have the business expertise or long-term capital to sustain RB through business cycles.
Shmoo Reply:
November 11th, 2010 at 10:48 am
Oh and forgot one key point on EA…they’re not Activision, but they don’t have a great track record with developers either. They buy ‘em, milk ‘em and toss ‘em, or at least have many times in the past.
If Viacom truly has multiple suitors, I’m guessing Apple and Microsoft are at least “at the table” in order to get in on terms and details of the business or see if they can make a play on the cheap, whether they are seriously interested or not. I would be shocked if Activision weren’t part of discussions for the same reasons (at the minimum, perhaps, learning what they’re doing wrong besides all the obvious stuff…).
Jonathan Reply:
November 11th, 2010 at 2:30 pm
Apple buying HMX would be very unexpected. Sure they both deal with music liscensing, but I personally don’t see the first gaming compnay they buyu being HMX. I wouldn’t mind it though, We would probably get more music b/c Apple is huge and Rock band would become more well known. This must be very stressful for HMx right now
I just hope that, if they realy sell it, Harmonix will keep the rights to the Rock Band platform. If not they would have to start over with a new franchise, new DLC and given the state of the videogame music business I don’t see much investment thrown in a new incarnation of Guitar Hero.
Are you kidding me? This being just a few days after they announce 75 million DLC downloads. How stupid can these guys be? I really hope this doesn’t negatively affect Rock Band, but it probably will. Song licensing is going to become an issue because the guys who made the decision to sell off Harmonix want to look as good as possible, which can only be achieved through Rock Band’s future lack of success. At this point, Harmonix should team directly up with the music labels.
argyle Reply:
November 13th, 2010 at 11:50 am
The number of sales is meaningless without a profit/loss statement. Viacom is smarter than you, trust me.
This may be heresy, but I really don’t think Rock Band will suddenly become retarded if Activison does buy HMX. Maybe they would just let Harmonix continue to do their thing, since it’s got to be obvious to them now that HMX is better at it than they are. I mean, imagine a scenario where some Activision big shot comes into their office and is like “Hey, we want a fantasy storyline, a disproportinate amount of metal (and not good metal) and playable characters based off dead musicians!” HMX will be just like “Right, because that worked out so well for you guys last time.” I think it would be like a Disney/Pixar situation. Disney may own them, but Pixar calls the shots cause they bring in the money and acclaim.
One bright side of Activision purchasing HMX would be that we might have access to some groups that have previously been all over Guitar Hero but not Rock Band, such as Metallica, Black Sabbath (masters) and even…gasp…MUSE.
But we don’t know if this will even happen, so let’s not get too worked up. *watches as community has a collective heart attack*
KB Reply:
November 11th, 2010 at 9:13 am
There’s a lot wrong with what your saying, and we have precedent here.
Not sure if you’re aware how Blizzard has coped with becoming an Activision subsidiary, but it’s actually not all sunshine and lollipops there.
Regardless of people’s personal feelings about World of Warcraft, Blizzard is a dynamic, powerful studio. They are masters of storytelling and gameplay innovation (for the most part). When Activision acquired them, they told Blizzard it was basically an acquisition in name only, and that they wouldn’t interfere with daily operations.
A year later, Blizzard is actually faced with deadlines set by Activision. Blizzard isn’t exactly the speediest game development studio, and that’s because they take their time and release (usually) finished, polished products – putting a fire under their ass is setting them up to fail. Saying, “We want Diablo 3 in 2011, Starcraft expansion in 2012, WoW expansion in 2013, etc.” is forcing Blizzard to follow timelines and business models. The stress of this hasn’t become obvious yet, but I’m rather cautious about Diablo 3, something I feel, if released in 2011, may not have had the same time, attention, and polish as Starcraft 2.
Also, Bobby Kotick is notoriously hostile towards Rock Band and Activision’s past with Harmonix. He would probably dismantle the Rock Band platform on day one.
Plutarch Reply:
November 11th, 2010 at 9:21 am
Wasn’t their some quote where Kotick more or less apologized for being an asshole about Harmonix and Rock Band? I thought I read that somewhere.
I can see the potential drawbacks, but I don’t know if the Blizzard thing is entirely a fair comparison. Blizzard is being asked to release a game each year…so this would be bad for Harmonix how? There were already two Rock Band games in 2010.
I personally prefer the scenario someone else mentioned where they are just bought by EA. But I still don’t think it’s an apocalypse if Activision winds up getting them. But it wouldn’t be the Rock Band community if people didn’t lose their shit over everything.
cbarrentos Reply:
November 11th, 2010 at 10:19 am
anytime Kotick apologizes, it’s just PR spin.
developers and creators who have worked with him have painted a pretty clear picture about the kinda guy he really is.
RockBandAide Reply:
November 11th, 2010 at 11:34 am
Yes, here: http://www.rockbandaide.com/3494/good-thing-harmonix-is-a-failed-developer/
Aw Reply:
November 11th, 2010 at 11:16 am
Infinity Ward, developers of the more acclaimed Call of Duty games (1, 2, Modern Warfare 1 and 2) are owned by Activision. Shortly after Modern Warfare 2 was released, two of the senior employees at Infinity Ward (the president and the co-founder) were fired. Half the staff of Infinity Ward then quit, including lead designers and programmers. And they all filed lawsuits against Activision claiming that the Infinity Ward heads weren’t paid royalties for Modern Warfare 2, and that Activision was withholding overtime bonuses from Modern Warfare 2 in order to keep them working on Modern Warfare 3.
Activision pulled out from publishing Tim Schafer’s Brutal Legend, and then tried to sue when EA took over the publishing rights to the game.
They’re running several successful franchises (Guitar Hero, Tony Hawk, Call of Duty) straight into the ground. They treat their developers like shit and milk popular titles dry as quickly as possible.
Activision’s involvement with Harmonix would be bad for Harmonix and bad for Rock Band. No question.
maybe EA will buy them. RB is kind of a flagship for them and I don’t think it would help them much if Activision effectively shut them out of the rhythm game business.
Some big notes:
1) If Activision buys Harmonix, it doesn’t mean that the game would suddenly turn into Guitar Hero. Keep in mind that half the reason GH went down the crapper was because Activison brought in companies like Neversoft and Beenox that completely missed the point behind why these games were fun/successful in the first place. With Harmonix back under the helm, the game would remain essentially the same, as Harmonix would still be the guys putting it together,
2) Activision already has a money maker in Guitar Hero, a name that (despite critical distaste) still carries a lot of weight in the public eye. The biggest reason they’d aquire Harmonix would be to essentially get the monopoly on the music game genre. Rock Band may go away, but HMX would likely take over Gutiar Hero. That’s not exactly a bad thing.
3) Despite fear of the contrary, HMX losing its direct ties to MTV doesn’t mean they suddenly won’t be able to gain access to artists. The Rock Band/Harmonix name is established enough in the music industry that they’ll still have that relationship with labels/artists to work with their content. The bigger problem with losing their ties to MTV is instead going to be the built in promotional avenues that come with MTV/VH1/CMT etc.
4) I really hope that they don’t get bought by Microsoft. More because it would make the forums unbearable. HMX is about to be sold from their parent company. Should (god forbid) nobody pick them up, that’s it. HMX is left to basically run on its own or go under. So if they end up being picked up by a console dev, there’s going to be a lot of stupid people arguing that they sold out…failing to realize that for them it was either get bought or go under and lose their jobs.
Wow this sucks. I just hope that the Hamronix team stays together and stays on Rock Band. I want RB to remain the way it has been all these years and the way GH WAS in the beginning.
Guess we will see what happens…
Anex Reply:
November 11th, 2010 at 9:12 am
Harmonix*
An interesting move by Viacom.
Personally I’m not concerned at the moment. I’m sure Harmonix learned from their past and set themselves up well enough legally to avoid Rock Band ever falling out of their possession.
Depending on who they get bought by there could be a lot of positive effects to this.
Dorkmaster Flek Reply:
November 11th, 2010 at 9:25 am
There could be some, yes. If they ended up getting in with EA’s Partner Program like the former Infinite Ward guys did when Activision kicked them out the door, this could actually end up being good for them. I’m concerned about losing the MTV connection, but surely Viacom would still see the inherent business sense in giving them access to the music for the game. They just don’t want to fund all the development costs.
Rick Reply:
November 11th, 2010 at 9:55 am
I think losing the MTV connection would put a damper on operations, but I don’t think it’ll be too serous. Yes the connection is great on both a music and marketing stand point. But when I think RB, I don’t necessarily think MTV. It’s not branded that way. Artists will want to get there songs into the game (i.e. Billy Joel) simply because the game itself is huge.
The advertising and marketing they’ll lose will be tough but I’m sure other avenues will present themselves when a final sale is made. Also, since RB3 is still an MTV game, I’m sure MTV will want to do some advertising via their channels until it becomes obsolete.
I’m not sure I get how Harmonix isn’t making a profit.
Croq Reply:
November 11th, 2010 at 9:28 am
Yeah, 75 million downloads brings in a bunch of $$$.
Shmoo Reply:
November 11th, 2010 at 10:10 am
Relative to payments Viacom was making to Harmonix, even after initial acquisition, $75 million is absolute chump change. Also 75 million downloads include free downloads. *IF* they pull a profit of 30% on 75 million downloads (assuming they are all paid for this exercise), that’s ~$20 million.
With game sales of only a couple hundred thousand out the gate…I can see why Viacom would want to divest themselves as they don’t see it as a profit center or a business sector they need to be a part of just to keep from “losing control of music” in a greater sense.
Oathbreaker Reply:
November 11th, 2010 at 1:58 pm
Selling at this point doesn’t unspend the money. Better off to wait and sell it after the Christmas season when most families will buy the game and recoup some cost.
Just sounds to me like they have seen Harmonix as a money pit for too long and they were planning on selling them for awhile. You don’t sell a brand like Rock Band and one of the best Kinect launch titles Dance Central because of one bad quarter.
I wonder if they were approached by a potential buyer before making the final decision… might explain this assuredness of a fast sale.
Yaniv Reply:
November 11th, 2010 at 12:05 pm
Well, have you ever considered the production costs of the pro guitar and pro keys? they surely spent a lot of money on getting it right.
Regardless of how this turns out, that’s pretty crappy news for Harmonix. It’s so disheartening to see this after how much they’ve done to truly innovate in the music game space. Say what you will about the high price and niche appeal, but you can’t look at something like pro keys and especially pro guitar and tell me that they aren’t innovating. Ideally, such innovation would be rewarded, but it seems people are content to run out and buy the new Call of Duty game. Seriously, what possible innovation could that franchise have possibly undergone to justify $360 million in sales on day one? That’s bloody depressing…
RockBandAide Reply:
November 11th, 2010 at 11:32 am
THEY HAVE TOY CARS!!!
I want to ask how ANYONE that bitches about the rhythm gaming franchise to justify to me WHY we need multiple iterations of the same tired Call of Duty/Medal of Honor/Battlefied/Halo/etc/etc/etc game.
Shmoo Reply:
November 11th, 2010 at 11:52 am
Yeah, no answer here. I got tired of FPS games after the first Halo. I played COD 2 a few times and just didn’t see the point after the first couple stages.
rodz Reply:
November 11th, 2010 at 1:10 pm
I usually don’t like shooters but Battlefield is awesome
Here is what is important as a consumer.
Does harmonix own the rights to Rock Band?
If this is the case I feel as we have nothing to really worry about.
If not. I may just stop buying DLC altogether. We saw wgat happened to the last IP they didn’t own when they got bought.
RockBandAide Reply:
November 11th, 2010 at 10:11 am
If Viacom is selling Harmonix, it’s clear that they have no use for the Rock Band IP. Viacom wouldn’t get much money for Harmonix if the Rock Band IP wasn’t included. From a business standpoint, it’s in Viacom’s best interest to sell off the Rock Band IP along with Harmonix.
Shmoo Reply:
November 11th, 2010 at 10:24 am
Agreed. One thing that seems clear to me is that Viacom doesn’t see a future in the music game sector, beyond perhaps some social/mobile games they can have developed by a partner.
Viacom likely felt the MTV synergy would be enough to make RB into a big profit center (which it apparently is not) or that Viacom needed to be a part of a (at the time) growing music game trend lest they miss out on the next wave in the music business.
It seems to me that the game sales aren’t high enough and the licensing terms (for developer/publisher) are not favorable enough. Which would point to the music industry missing the point for the 1,000th time.
Bryan Reply:
November 11th, 2010 at 1:50 pm
That mentality makes this news easier to swallow. Just don’t want my investment in RB to just be discontinued.
Thanks
How about Apple?
They’re sitting on $50 billion in cash right now and looking for something to buy. They clearly have a good working relationship with record labels…
Alex Reply:
November 11th, 2010 at 9:44 am
That’s interesting.
Apple has been angling for gaming revenue since the release of the iPod touch. I wouldn’t call their relationship with the record labels as “good” necessarily. Random thoughts:
DLC purchase and playlist sharing via iTMS?
Online multiplayer via GameCenter?
Ping integration into RB.com?
GarageBand authoring of DLC?
Gameplay recording and sharing in iMovie?
Delibird444 Reply:
November 11th, 2010 at 10:06 am
I don’t think Apple would be an ideal solution…
Apple would take any “openness” about the Rock Band platform (ex: Rock Band Network) and close it tight. I could also foresee Apple bringing the entire Rock Band series into their “walled garden”, and forcing people to play it on iDevices, or the inevitable Apple gaming machine. You could say goodbye to Kinect games like Dance Central too…
rodz Reply:
November 11th, 2010 at 1:15 pm
And all our DLC would become obsolete too. We expect it to happen by the end of this console generation but it doesn’t need to be so soon
While MTV’s backing was essential, especially in the early days, I think Rock Band has established itself enough over the years that we’ll be fine. Apparently there’s always a huge backlog of DLC so any licensing crisis could be settled by the time we would notice.
At least people can stop arbitrarily blaming MTV for popular DLC they don’t like.
This is very odd timing, right before Black Friday/Christmas sales. I wonder if Apple could be a potential buyer?
Of course, one of the biggest media conglomerates in the world “doesn’t have expertise” in the console games market. They’re only well-versed and highly experienced in everything else… *rolls eyes*
You would think that Viacom would have their own game studio (besides HMX) by now so they wouldn’t have to continuously hand off all their Nickelodeon IPs to a company that also handles IP from Time-Warner and Walt Disney. As adequate as THQ is, they shouldn’t be handling IP from three different competitors. It’s like someone who works for McDonalds, Wendy’s, and Sonic’s in the same time frame.
Tangent aside, Viacom should get their heads on straight and learn the biz, just like they have for everything else. HMX is fine enough the way it is now, and shouldn’t be tampered with lest it all fall apart (and considering the long-term legacy of the platform compared to almost every other game, that’s a big priority).
Shmoo Reply:
November 11th, 2010 at 10:17 am
Just because Viacom said it doesn’t mean it’s the truth. They need to appear in control at all times, like any business with shareholders. Also, if they claimed “Harmonix/RB just hasn’t performed to expectations and we don’t see a highly profitable future for the sector or need to be involved”…well, how do you think that would help their positioning when they try to maximize sale price from potential suitors?
From http://www.rockband.com/forums/showthread.php?208088-Response-to-Questions-about-Viacom-Selling-Harmonix :
“Hi Guys:
We’ve seen a lot of questions pop up in response to Viacom’s statements this morning regarding their intention to sell Harmonix. We’ve posted this thread to respond to those questions. Please keep your forum conversations regarding this matter in this thread. We’ll check in throughout the day as we’re able.
This morning’s announcement does not affect the ongoing work at the studio as we continue to support our existing franchises, Rock Band and Dance Central. As stated earlier, Viacom is in discussions with several potential buyers and will continue to fully support the business until a sale is completed.
If you have additional questions or concerns, please post them in this thread. If you’re a member of the media with inquiry, you can reach out to us at press@harmonixmusic.com. (Please don’t email this address if you’re not from a press outlet).”
Bryan Reply:
November 11th, 2010 at 9:59 am
UNTIL the sale is completed? Does this mean they won’t be working on these series afterwards?
Adam Reply:
November 11th, 2010 at 10:11 am
I’m sure all it means is that Viacom isn’t pulling the plug right now…it’s business as usual until Harmonix is sold. After that, the responsibility is handed off to whoever buys Harmonix.
T Reply:
November 11th, 2010 at 11:47 am
Viacom owns HMX. Thus they are going to continue work on HMX related projects until they no longer own the company. At which point (logically) Viacom no longer has any interest in HMX or its projects.
I’m actually okay if Activision buys Harmonix. Say what you want about them, but they’ve always kept parity between all three consoles with Guitar Hero. In fact, the Wii has some exclusives with the DS battles.
Skydog Reply:
November 11th, 2010 at 10:35 am
Yeah with releasing 6 dlc for 1 month.
No console should buy them, idc what you xboxers say.
killer_roach Reply:
November 11th, 2010 at 11:36 am
Agreed. (Of the three console makers, the one that makes the most business sense to do so would be Sony, seeing as they own one of the major labels, but they’ve got other things on their plate at the moment, namely fending off the possibility of Apple buying them out.)
Max Reply:
November 11th, 2010 at 12:43 pm
I am an Xbox player and while I’d rather see a publisher purchase them that will allow them to continue making multiplatform releases, I’d rather see Microsoft buy them then say, Activision.
killer_roach Reply:
November 11th, 2010 at 6:12 pm
You say that because you’re an Xbox player. For those that don’t play on the 360, Microsoft buying Harmonix is tantamount to them disappearing off the face of the earth.
I wonder if Viacom was waiting to see how RB3 sold, and I wonder if this means it didn’t sell well…
Skydog Reply:
November 11th, 2010 at 10:44 am
It’s only been out a week…….. or 2?
Music games aren’t doing good the first couple months it seems.. come holiday season it may.
Polite Reply:
November 11th, 2010 at 8:10 pm
Yeah, but video game success or failure is determined with 1st week sales.
Fingers crossed on EA. That’s my hopes at least. No activision though…
D00k13 Reply:
November 11th, 2010 at 11:35 am
Also don’t forget Harmonix is tight with Dhani Harrison, of course THE BEATLES, and also Green Day. I don’t think itll be a challenge for Harmonix to get the stuff they want.
Polite Reply:
November 11th, 2010 at 8:09 pm
Dhani Harrison and Green Day make all the decisions in the world of business.
argyle Reply:
November 13th, 2010 at 11:55 am
LOL The Beatles was the beginning of the end.
Yes to EA or Microsoft. Big fucking no to Activision. They are the evil empire.
(yes, I get the irony of saying yes to microsoft and calling activision an evil empire. sue me, I’m an xbox owner).
D00k13 Reply:
November 11th, 2010 at 11:30 am
Exactly. EA is fine because they aren’t console specific. Microsoft might be an option but then xbox gets everything and us Wii/PS3 owners only have our old discs/dlc. No need for being greedy
Aw Reply:
November 11th, 2010 at 11:31 am
I mean, it would make some financial sense for Harmonix to go to Microsoft. 360 has the largest Rock Band audience and that’s where RBN proper is.
It’d just be a giant bummer for the third of the Rock Band audience (myself included) who doesn’t have an Xbox. And even if Microsoft do buy them, I’m not about to go get one and start paying Live fees.
It would just mean the end of playing Harmonix games for me. As would a sale to Activision.
One thing is for sure. If Viacom wants out of this particular business, that was a decision made way back. Now is the perfect time to for them to announce this with sucessful launches of two games. I would never think that this move has anything to do with HMX’ success or profitablility.
gladiatory2k Reply:
November 11th, 2010 at 11:42 am
does that mean Green Day:RB tanked?
T Reply:
November 11th, 2010 at 12:22 pm
I think it’s foolish to look at any one game and call that the reason for this sale. It could very well be that sales are what Viacom expected but they just don’t want to focus on videogames at large anymore.
Hey… anyone else notice that rockband.com just started giving the “We’ve Rocked To Hard”?
T Reply:
November 11th, 2010 at 11:45 am
What’s that got to do with anything? You think HMX is just gonna *poot* out of existence without any rhyme or reason?
The site has had issues since launch. It’ll be on and off until they get everything corrected.
iNick64 Reply:
November 11th, 2010 at 11:48 am
well… normally the site is down for like a second then pops right back up. all im saying is that if they got bought by someone else that they will change the Subsidary of MTV games owned by Viacom. etc.
Shmoo Reply:
November 11th, 2010 at 11:55 am
I’d guess traffic based on every RB aficionado rushing to the web site upon hearing of the potential sale. Period.
T Reply:
November 11th, 2010 at 12:21 pm
*THIS*
The panicked masses that make up 90% of the RB forum populace rushed the forums for info and caused a system that was still a bit unsteady to collapse.
Not good news at all. Let’s hope that activision is not one of the potential buyers
@iNick64, yeah I noticed that too.
iNick64 Reply:
November 11th, 2010 at 11:39 am
*sigh* so its not just me. Hopefully this is a sign… a good one at that.
Skydog Reply:
November 11th, 2010 at 11:50 am
Like the guy above said.. it’s been doing this since the new site was put up… there’s no point in having an seizure over it ;]
-pats the internet-
Everything is going to be alright.
Polite Reply:
November 11th, 2010 at 8:07 pm
I just don’t know sometimes. *sniff*
Today’s announcement makes me wonder if it didn’t play into Dan Teasdale’s departure. I mean, that was only 4 months ago, and it’s entirely likely that these “sell-off” steps have been in play for that long.
I am curious to see what’s gonna happen here.
And I’m still buying the Bee Gees DLC next week.
Skydog Reply:
November 11th, 2010 at 12:26 pm
Beegees FTW! <3
That can cheer anyone up.. because Harmonix is
STAYIN ALIVE! STAYIN ALIVE!
I also wouldn’t rule out that Viacom might be in need of some quick capital and RB & Harmonix are the easiest things to sell.
No has mention ZeniMax Media (http://en.wikipedia.org/wiki/ZeniMax_Media). They’ve been buying companies left and right recently. id Software, Arkane Studios, Tango Gameworks just to name a few.
killer_roach Reply:
November 11th, 2010 at 3:24 pm
Those are all tiny studios… last I knew, Harmonix employed at least twice as many people than all three of them combined… sure, id has a lot of tech and IP under their belt, but they’re smaller than some “indie” studios.
I hope that somehow they manage to buy themselves and stay independent, and just continue to publish through EA.