Developer Harmonix, creators of the Rock Band series of games, as well as the recently released Kinect launch title Dance Central has been sold for the paltry sum of 50 USD. While cheaper then the cost of a current generation game, the buyer, investment group Columbus Nova will also assume all of the financial responsibilities associated with the studio such as the royalties to be paid out to artists featured in their games, as well as the probable Raiders of the Lost Ark-esque warehouses filled to the brim with unsold band kits.
It’s rumored that Viacom (former holder of Harmonix) will gain $150 million dollars in tax benefits from the sale, and considering they paid 175 million for the company in 2006, it doesn’t seem that it is too bad of a deal for the publisher to make with the current state of the music video game genre.
While I have little insider knowledge on the subject, after following the saga of the former Guitar Hero developer as they worked to perfect the rhythm music genre, I’m hopeful that Harmonix will be able to land on their feet without losing studio talent from a probable restructuring. It will take some time to find out what the future holds for Harmonix, whether it be more Rock Band, more downloadable songs, or some sort of refocusing that could see the developer go back to it’s roots with games like Amplitude and Frequency, or strike out on a new path and explore different genres and experiences within the music games space.
Electronic Arts, who has distributed all of the previous Rock Band titles, stated that buying Harmonix was like “catching a falling knife.” EA CEO John Ricotello continued further in an interview with financial publication Bloomberg stating that
“There is going to be a time when perception catches up with the facts…I’m sure some smart investor will buy the business feeling that they can catch a falling knife. But more people have been cut trying to catch falling knives than have benefited from getting the timing exactly right.”
Will Columbus Nova catch the blade, or get cut? As the saying goes, Time will tell.
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