Music Video Games Account for 32% of Industry Growth in '08

This, folks, is why Bobby Kotick can tell Warner Music to show some respect. The game industry is exploding, while the music industry is not. More data points within...

by James Brightman on Friday, August 15, 2008

Music Video Games Account for 32% of Industry Growth in '08

We all know that Guitar Hero and Rock Band are huge, and now other game companies are joining the music act, such as Disney with Ultimate Band, Nintendo with Wii Music, and Konami with Rock Revolution.

Just how important is this growing sector of the industry? According to UBS analyst Ben Schachter, music games have been a "key driver" this year, with "sales of music-themed games responsible for 19% of overall industry software dollars in July (15% YTD) and 44% of y/y industry dollar growth during the month (32% of growth YTD)."

Total dollar sales in the U.S. games industry hit $9.47 billion through July, according to the latest NPD data. That's 35 percent ahead of 2007 at this point, and Guitar Hero and Rock Band have no doubt been major contributors. In fact, Schachter points out that Guitar Hero franchise dollars year-to-date are up a whopping 87 percent. In terms of units, Guitar Hero is up 82 percent this year. On a dollars basis, the recent DS release of Guitar Hero: On Tour took in more than $15 million in July alone. Moreover, MTV Games' Rock Band bundles on Wii, PS2 and Xbox 360 combined for nearly $47 million in sales in July.

The business is booming, and it shows no signs of slowing down. If anything, with Guitar Hero: World Tour and Rock Band 2 both launching this fall/holiday season, we'd anticipate the music games sector to account for possibly more than a third of industry growth in 2008, a year which will undoubtedly shatter all previous sales records.

Guitar Hero World Tour Screens

    Guitar Hero World Tour is comprised entirely of master recordings from some of the greatest classic and modern rock bands of all-time including Van Halen, Linkin Park, The Eagles, Sublime and many more. Additionally, the game will offer significantly more localized downloadable music than ever before on all of the next-generation consoles. Budding rock stars will also be given creative license to fully customize everything from their characters' appearance and instruments to their band's logo and album covers.

    Activision

    Guitar Hero World Tour is comprised entirely of master recordings from some of the greatest classic and modern rock bands of all-time including Van Halen, Linkin Park, The Eagles, Sublime and many more. Additionally, the game will offer significantly more localized downloadable music than ever before on all of the next-generation consoles. Budding rock stars will also be given creative license to fully customize everything from their characters' appearance and instruments to their band's logo and album covers.

    Activision

    Guitar Hero World Tour is comprised entirely of master recordings from some of the greatest classic and modern rock bands of all-time including Van Halen, Linkin Park, The Eagles, Sublime and many more. Additionally, the game will offer significantly more localized downloadable music than ever before on all of the next-generation consoles. Budding rock stars will also be given creative license to fully customize everything from their characters' appearance and instruments to their band's logo and album covers.

    Activision

    Guitar Hero World Tour is comprised entirely of master recordings from some of the greatest classic and modern rock bands of all-time including Van Halen, Linkin Park, The Eagles, Sublime and many more. Additionally, the game will offer significantly more localized downloadable music than ever before on all of the next-generation consoles. Budding rock stars will also be given creative license to fully customize everything from their characters' appearance and instruments to their band's logo and album covers.

    Activision

    Guitar Hero World Tour is comprised entirely of master recordings from some of the greatest classic and modern rock bands of all-time including Van Halen, Linkin Park, The Eagles, Sublime and many more. Additionally, the game will offer significantly more localized downloadable music than ever before on all of the next-generation consoles. Budding rock stars will also be given creative license to fully customize everything from their characters' appearance and instruments to their band's logo and album covers.

    Activision

    Guitar Hero World Tour is comprised entirely of master recordings from some of the greatest classic and modern rock bands of all-time including Van Halen, Linkin Park, The Eagles, Sublime and many more. Additionally, the game will offer significantly more localized downloadable music than ever before on all of the next-generation consoles. Budding rock stars will also be given creative license to fully customize everything from their characters' appearance and instruments to their band's logo and album covers.

    Activision

    Guitar Hero World Tour is comprised entirely of master recordings from some of the greatest classic and modern rock bands of all-time including Van Halen, Linkin Park, The Eagles, Sublime and many more. Additionally, the game will offer significantly more localized downloadable music than ever before on all of the next-generation consoles. Budding rock stars will also be given creative license to fully customize everything from their characters' appearance and instruments to their band's logo and album covers.

    Activision

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