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Harmonix loss of $65 million

Jeffg010

Jeffg010

Diamond Member
http://finance.yahoo.com/news/For-R...0.html?x=0&sec=topStories&pos=7&asset=&ccode=

"As for video games, the Rock Band franchise has not suffered for lack of attention. Viacom bought Harmonix in 2006 for $175 million in cash, and two weeks ago, released Rock Band 3 to positive reviews. But in the third quarter, Harmonix reported a loss of $65 million before interest, taxes, depreciation and amortization.

Those results did not come out of the blue, considering Harmonix has been identified for some time as a drag on Viacom's earnings.

"Being in the video game space was never strategically necessary to begin with," said Frederick Moran, an analyst for the Benchmark Company. "And since Rock Band as a product has matured, it now makes even less sense.""

This does not bode well for Harmonix losing $65 million. I hope they can find a way to fix this I don't want to see this end. Via looks wot be sell them I just hope EA does not buy them.
 
Yes, Viacom has announced an intent to sell Harmonix and there some HMX response on the RB forums.

I thought it might be interesting if Microsoft purchased them, given that Dance Central is one of the best Kinect games.
 
I always wanted to know how Harmonix intended to make money. I am really, they need to sell LOTS to just break even. I'd imagine that its not cheap to pay all those royalties.
 
Gibson486 said:
I always wanted to know how Harmonix intended to make money. I am really, they need to sell LOTS to just break even. I'd imagine that its not cheap to pay all those royalties.
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Royalties should be a variable cost, so it shouldn't matter how many (or how few) copies they sell. I'd be curious to see exactly how they're losing money.
 
Gibson486 said:
I always wanted to know how Harmonix intended to make money. I am really, they need to sell LOTS to just break even. I'd imagine that its not cheap to pay all those royalties.
Click to expand...

Maybe through a game called Rock Band, by far the best rhythm game available.

Remember Harmonix made Guitar Hero and sold it to another company that ruined it. Harmonix is where the talent is at.
 
The problem is that the market is saturated with music games and peripherals now. Nobody feels like dropping another $100+ on these sets that are being pushed out. That why The Beatles failed, Warriors of Rock is flailing and I expect something similar with Rock Band 3. This is where they are losing money.

The growth in DLC is where they are making money just not with the same profit margin that they experienced selling the full band sets at the height of the music game craze.
 
This is the first time around I did not buy the full set of peripherals. I think they lost out on that. I did get the Keyboard and might get that fender when it come out. I just hopr they keep going forward with real instruments. I would like to be able to play songs on real instruments.

Warlar
 
Queasy said:
The problem is that the market is saturated with music games and peripherals now. Nobody feels like dropping another $100+ on these sets that are being pushed out. That why The Beatles failed, Warriors of Rock is flailing and I expect something similar with Rock Band 3. This is where they are losing money.

The growth in DLC is where they are making money just not with the same profit margin that they experienced selling the full band sets at the height of the music game craze.
Click to expand...

Actually, I think the problem with Rock Band: The Beatles was that the game essentially had a wall around it -- no exports of songs, no imports of songs. I understand why that was necessary from a brand dilution standpoint, but Rock Band has its greatest value as a platform. As of Rock Band 3, I've got a 300 and change songlist (and I haven't even gotten around to importing Lego Rock Band yet), which is a tremendous and flexible amount of playtime -- assuming that you are still entertained by flailing away on plastic instruments.

I gave up on the Guitar Hero franchise because they adopted the "crank out a new disc/setlist" approach. Even though they've seen the error of their ways to an extent now, it's pretty clear that they're the imitator franchise.

I wonder how much R&D went into the development of Pro Mode. The interface design and testing, and prototyping and manufacture of the upgraded instruments would seem to be a big chunk of the expense of Rock Band 3.
 
DougoMan said:
Maybe through a game called Rock Band, by far the best rhythm game available.

Remember Harmonix made Guitar Hero and sold it to another company that ruined it. Harmonix is where the talent is at.
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Explain how Guitar Hero was ruined? I'd play Guitar Hero World Tour over Rock Band 1 or 2. The instruments were better, the game more innovative. The only thing Rock Band had going for it was available songs.
 
Malak said:
Explain how Guitar Hero was ruined? I'd play Guitar Hero World Tour over Rock Band 1 or 2. The instruments were better, the game more innovative. The only thing Rock Band had going for it was available songs.
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Uhhhh, real music instead of fakeass remakes. I agree though the physical stuff is far superior.
 
Malak said:
Explain how Guitar Hero was ruined? I'd play Guitar Hero World Tour over Rock Band 1 or 2. The instruments were better, the game more innovative. The only thing Rock Band had going for it was available songs.
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Innovative? LOL Harmonix created Guitar Hero.

Their plastic guitars are much better though.
 
Harmonix has been sold. Not much is known about the investment group that bought them yet, though there is speculation that it may be under the control of Harmonix themselves.
 
DougoMan said:
Maybe through a game called Rock Band, by far the best rhythm game available.

Remember Harmonix made Guitar Hero and sold it to another company that ruined it. Harmonix is where the talent is at.
Click to expand...

Harmonix did not sell guitar Hero.

guitar hero was published under RedOctane, a no name publishing company that sold out, guitar Hero franchise was taken from Harmonix in the deal, as Harmonix was not purchased itself and then had to go solo until getting picked up again.
 
i cant imagine it will take much resource to make the guitar heroes/rock band games. i bet they lost money going into a marketing campaign against guitar heroes that includes prime time slots, lots of them.
 
FTM0305 said:
Harmonix did not sell guitar Hero.

guitar hero was published under RedOctane, a no name publishing company that sold out, guitar Hero franchise was taken from Harmonix in the deal, as Harmonix was not purchased itself and then had to go solo until getting picked up again.
Click to expand...

Then why did Activision freak and say that Harmonix back-stabbed them after Rockband was announced?
 
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