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Viacom New Media

A Critical Look at Rhythm Gaming

Jason analyzes the recent sale of Harmonix, and what it means for the future of rhythm game sales.

A few months ago, Viacom sold off rhythm game developer Harmonix for a reported amount of fifty dollars. The most shocking aspect of this trade is that Viacom originally bought Harmonix for $175 million. Apparently the trade gives Viacom about $150 million in tax benefits, which is quite a hefty number, itself, but still, it seems like this is a major failure on Viacom's part, which reflects as a failure on the part of Harmonix, itself. A little while later, Activision reported that they will not publish a new Guitar Hero or DJ Hero game in 2011 after disappointing sales of the previous entry, simultaneously halting future DLC for the two franchises. The once-popular music gaming genre appears to have come to a screeching halt after oversaturation and the companies' failure to understand the market.

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Viacom Sold Harmonix for Fifty Dollars

Reports have emerged that the company was sold on the cheap, though debt was also transferred in Columbus Nova's acquisition.

In the month following Rock Band developer Harmonix's sale from Viacom to Columbus Nova, more details of the purchase have been released to the public. Harmonix was sold for $49.99, but along with the transfer of ownership of the developer came transfer of ownership of debt and costly assets. These costs include music licenses and the warehouse space unsold games and instruments take.

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