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Viacom Is Selling Off Harmonix

The developers behind Rock Band and Dance Central are no longer head-banging at the house of MTV.

In a set of financial announcements released today, Viacom has announced that it plans to sell off developer Harmonix Music Systems, the team behind Rock Band, Dance Central, and the first two releases of Guitar Hero. As Viacom explains in its report, the developer has now been “reclassified… as a discontinued operation”, so any new game in either the Rock Band or Dance Central franchises is going to come from some other publisher than MTV.
 

Will we see another iteration of Dance Central? 
Will we see another iteration of Dance Central? 

Over on the Rock Band 3 forums, Harmonix is assuring fans of the franchise that Viacom and MTV will continue to support Rock Band 3 until a sale goes through. Harmonix PR Big Shot John Drake posted on the Rock Band 3 boards that several buyers had expressed interest in picking up the developer, and, in the meantime, Rock Band and Dance Central players wouldn’t need to worry about the sale having an impact on support.


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.


 
Purchased by Viacom back in 2006 for the at-the-time whopping price of $175 million, Harmonix has since developed ten games together, including three proper Rock Band iterations, as well as two band specific s spin-offs, and several mobile titles. Despite the popularity and critical success of Harmonix’s major franchises, there have been signs that MTV and Viacom haven’t been pleased with the developer’s profit potential. Earlier this year, Viacom demanded that Harmonix refund a “substantial portion” of the devloper’s earned bonus payouts, claiming that, “We (MTV) are entitled to a refund,” leading some to speculate that the team’s writing has been on the wall for some time.
 

It's been a long road... but hopefully the road isn't over just yet.
It's been a long road... but hopefully the road isn't over just yet.

As it stands now, the partnership between Viacom and Harmonix looks like it's coming to a close. We'll see, before too long, if one of those prospective buyers decides to add Harmonix to its developer lineup.

139 Comments

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Yelix

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Edited By Yelix

Activision buys Harmonix, turns them into the Guitar Hero and Dance Hero team.

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BlaineBlaine

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Edited By BlaineBlaine

My first thought was Zenimax. 
 
While the music genre may be wrapping up for now, Harmonix delivers. It's an established, known brand with no real failures. They haven't APB'd. It just sounds like MTV gave them a phat bonus and then decided they wanted it back.  
 
So even if they don't make another 'lets play insturments' game, it's still a successful, functioning game development studio with designers used to selling product.

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skywing

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Edited By skywing
@SaltyPancakes said:
" Activision should buy Harmonix and give them the next Tony Hawk "
this
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switcher

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Edited By switcher

I guess Harmonix refused to make Rock Band:The Jersey Shore, and MTV didn't see any other way for them to turn a profit.

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MoeB

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Edited By MoeB

I bet they're going to have a more difficult time getting them artists.

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Pandasaurus

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Edited By Pandasaurus
@SaltyPancakes: oh god, that would be perfect. And then Viacom should pick up the ex-neversoft guys to make Rock Band 4! 
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Larannis

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Edited By Larannis

What MTV have music in thier company no way!!!  Not suprised over the last 20 odd years MTV has turned into a shithole anyways I hope Harmonix can work with a better company.
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FreakAche

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Edited By FreakAche
@BananaKid said:
" Music games are not selling and Rock Band 3 is, for a music game, pretty inaccessible. I'm not super surprised. "
Have you played Guitar Hero? That's the definition of an inaccessible music game.
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JJWeatherman

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Edited By JJWeatherman

This is probably a good business move; music games definitely aren't what they once were. I still love them though and I'll be sad if this ends up having any noticeable impact on the way Harmonix runs things. From what I could tell, they leaned heavily on their connections with MTV. I guess we'll just have to wait and see.

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Chris2KLee

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Edited By Chris2KLee

Hopefully just a bump in the road for this talented crew. I'm sure there are more than a few publishers out there that would be happy to get their hands on them and the IP, if that's the deal on the table. Harmonix knows the rhythm game, and it's shame they had to suffer because Activision flooded the market and essentially killed it with middling products. Yeah, maybe Harmonix had one too many band specific games, but even their weakest game was way better than most of the other stuff on the rhythm game market.

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TenStoryMother

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Edited By TenStoryMother
@SaltyPancakes said:
"Activision should buy Harmonix and give them the next Tony Hawk "
  
Bazinga!
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Macros

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Edited By Macros

I'm guessing either Bethesda or Apple will buy Harmonix. 
 
Yeah, Apple...Think about it, rumors they were looking to buy Sony. They have music ties with iTunes, it kinda makes sense.

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ohvee

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Edited By ohvee
@MoeB said:
" I bet they're going to have a more difficult time getting them artists. "
This probably isn't that big of an issue since the relationships are already established.
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Tredik

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Edited By Tredik

EA, Bethesda, Warner, Disney, *ANYONE* but Activision. PLEEEASE.

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dfsvegas

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Edited By dfsvegas

Why is this a good thing? Are we to believe that MTV had nothing to do with being able to procure a large amount of the song licences they were able to get? Weather it be the quality of getting hard to get licences, or the quantity of being able to build the store to over 2000 songs? 
 
There's no way this is a good thing in my eyes.

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dfsvegas

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Edited By dfsvegas

Why is this a good thing? Are we to believe that MTV had nothing to do with being able to procure a large amount of the song licences they were able to get? Weather it be the quality of getting hard to get licences, or the quantity of being able to build the store to over 2000 songs? 
 
There's no way this is a good thing in my eyes.

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ch13696

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Edited By ch13696

Did anyone forget that EA helped publish the game? If anything, I'm sure EA will buy up Harmonix just to continue their support on the game and to continue the competition against Activision.

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TadThuggish

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Edited By TadThuggish

Even good things can be run into the ground.  More than Viacom/MTV/EA, this was Activision's fault.  I know they get blamed for everything.  It's just that they they ruined a genre so fast it has repercussions all around.

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Grognard66

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Edited By Grognard66

My guess is EA or Zenimax picks them up; either one would work fine.
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hagridore

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Edited By hagridore

Oh fuck. Activision is going to buy them. 
 
Please, any other publisher else step and do the right thing.

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Wacomole

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Edited By Wacomole
@zoner said:
" This is bad no matter who picks them up.  Who could get music licenses as well as MTV for DLC? No one. "
I dunno.  Apple?   Universal?   Warner Bros?  Sony? 
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LordAndrew

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Edited By LordAndrew
@GS_Dan said:
" I think it was Beatles Rock Band which kind of cemented it. That said, who would people prefer to buy HMX? Activision? EA? ...Apple? "
Apple Corps. They should buy Harmonix and force them to make Beatles games all the time. :D
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sarahsdad

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Edited By sarahsdad

They could do worse than to be bought by Disney

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Zamir

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Edited By Zamir

Activision is gonna need a new "Guitar Hero" developer soon, i think these harmonix guys are up to it, loi

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Xanth93

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Edited By Xanth93
@Zamir said:
" Activision is gonna need a new "Guitar Hero" developer soon, i think these harmonix guys are up to it, loi "
Oh god no!
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Vaancor

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Edited By Vaancor

And I just bought RB 3 two weeks ago dang it! Now I'm not even sure if the blasted thing will be supported as good as RB 2 was.

Hope these guys get a good deal.

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Malakhii

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Edited By Malakhii
@JJWeatherman: Yeah, I've heard Rock Band 3 is selling poorly too, which is a real shame. Hopefully Dance Central turns into a nice franchise for them, or that they can come up with something else. Weren't they said to be developing a new amplitude or frequency?  
 
Whatever the case Harmonix is probably the developer that has brought me the most pure fun over the past few years. and I really hope they find a way to keep going strong. Once again MTV is turning away from music, I'm sure they need the money to pay the jersey shore people more. 
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scottygrayskull

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Edited By scottygrayskull

I assume Harmonix is profitable... sucks that they just weren't profitable enough though... :(

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ProfessorEss

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Edited By ProfessorEss
@Malakhii said:
Once again MTV is turning away from music
Yeah, I just assumed the Harmonix games were far too music related for MTV's liking.
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dvorak

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Edited By dvorak
@Malakhii said:
" @JJWeatherman: Yeah, I've heard Rock Band 3 is selling poorly too, which is a real shame. Hopefully Dance Central turns into a nice franchise for them, or that they can come up with something else. Weren't they said to be developing a new amplitude or frequency?   Whatever the case Harmonix is probably the developer that has brought me the most pure fun over the past few years. and I really hope they find a way to keep going strong. Once again MTV is turning away from music, I'm sure they need the money to pay the jersey shore people more.  "
I appreciate your Jersey Shore joke, but Viacom is waaaay bigger than MTV. They own dozens of TV channels and compete in many different markets and industries. MTV games or whatever was just a bit of branding for their games arm. 
 
Some times not enough profit, in the long run can in actuality be a loss. You can bet they are worth a lot more than $175 million now though.
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subyman

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Edited By subyman

I just have a hard time shelling out 120+ dollars for a keyboard and the game.  The game by-itself is pretty much just a list of new songs.  Rhythm games are fun, but very expensive to keep up with.

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Malakhii

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Edited By Malakhii
@dvorak: I guess I'm assuming the MTV games brand would fall under the MTV arm and be under MTV's control, more then corporate Viacom,  but obviously it's the big boys that are making the calls on when to sell stuff. That said I agree its seems to be a good business move in the short term, with the rhythm genre moving the way it is. The sad thing is I believe Harmonix is the only redeeming thing under the MTV name, and now they're selling it off. But of course I am not MTV's target audience........ A 15 year old girl with low self esteem. After playing RB3 though, it's pretty obvious the gang at Harmonix has become pretty good at what they do, and I think they'll be able to come up with some new great ideas.  
 
@ProfessorEss:
   http://i.imgur.com/PAOgi.png
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Sil3n7

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Edited By Sil3n7

If Activision buys....the world ends.

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erik_wolff

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Edited By erik_wolff

Giant Bomb should buy Harmonix!!!!!!

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slothboyadvance

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Edited By slothboyadvance

MTV is selling a company that exclusively makes music games when the music game genre is starting to slump?  Shocking.

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Phished0ne

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Edited By Phished0ne

I wonder if not having MTV/Viacom involved will hurt music licensing any.... 
 
probably not, but we'll see

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Example1013

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Edited By Example1013

Eh, Rock Band 3 is really just the pinnacle of the whole "realistic peripheral" portion of the music genre. I mean, seriously. You've got note-accurate guitar, bass, keyboard, and (probably at least partly) drums, along with solid vocals. Where else can you go with peripherals? There aren't really any other instruments that you can fake playing, because the rest involve different fingerings for each.
 
Seriously, Saxophone Hero? Trumpet Hero? It'd probably be cheaper to just buy the instrument, because I doubt they'd be able to bring any kind of decent experience to it, besides the fact that no one would want to play it. 
 
The whole Guitar Hero/Rock Band-style game is over, I predict. I doubt they'll stop selling songs in DLC and track packs, but I don't see another new-peripheral release in the future, except maybe for a real guitar/keyboard/drumset, similar to the Squier Strat, except cheaper.
 
This means Harmonix is probably going to have to branch out and make more innovative games. And I have no doubt they'll manage, seeing as they created a bunch of the best games out now.
 
 
Oh, and Activision did kill it for Harmonix. If there weren't 15 guitar hero games, you think people really would have had a problem buying more Rock Band stuff?
 
The release date of RB3 might also be contributing to poor sales, as well. I mean, think of how many regular games came out over the last month. For the $120 or $200 or even $300 you'd be spending on RB3 with new peripherals, you could get at least 2 or 3 brand new, full games. People probably just aren't willing to drop the money, or maybe don't even have it. I know that's why I don't have RB3 yet.

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Chaoskiller2000

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Edited By Chaoskiller2000

I wonder how this is going to affect everything being that Rock Band u are supposed to be able to transfer everything from game to game? I hope this is not the end for Rock Band or Dance Central I would be truly sad.

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bknight2k

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Edited By bknight2k

Anyone say Activision

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WilliamRLBaker

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Edited By WilliamRLBaker

Come on Microsoft you have the money, you have the technology *dance central* and you need an exclusive! come on!!!!

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ProfessorEss

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Edited By ProfessorEss
@Malakhii: Haha.
 
As the owner of a two year old, I see A LOT of Yo Gabba Gabba.
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TJSmash

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Edited By TJSmash

inb4 Rock Band: Warriors of Rock

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Binny

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Edited By Binny

Thank goodness.  I hated giving money to MTV.

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ajamafalous

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Edited By ajamafalous
@FreakAche said:
" @BananaKid said:
" Music games are not selling and Rock Band 3 is, for a music game, pretty inaccessible. I'm not super surprised. "
Have you played Guitar Hero? That's the definition of an inaccessible music game. "
What would you say makes Guitar Hero inaccessible?
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kagato

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Edited By kagato

As long as Kotick doesnt get his mits on them i dont care who buys them, last thing we need is his greedy ass grinding them any further into the ground.  Its a shame to see all the hard work Harmonix have been doing getting a game up to this standard only to watch them be cast aside, i hope its not the end for them, we may never see that crazy cool guitar ive been waiting on....

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FreakAche

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Edited By FreakAche
@ajamafalous said:
" @FreakAche said:
" @BananaKid said:
" Music games are not selling and Rock Band 3 is, for a music game, pretty inaccessible. I'm not super surprised. "
Have you played Guitar Hero? That's the definition of an inaccessible music game. "
What would you say makes Guitar Hero inaccessible? "
It's got much less genre variety in it's soundtrack and DLC. That, and the charts are generally much more complicated (with the exception of Rock Band 3's Pro Mode).
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ThaMilkMan

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Edited By ThaMilkMan

Am I alone in thinking that this is kind of ridiculous. I mean it's understandable that the business decision to buy them for SO much money and pay the heads SO much in royalties was a miscalculation by MTV's part, but I'm not sure why they'd sell them off. The games are good, they are bringing in DECENT revenue, I just don't understand. Maybe they aren't selling as well as they did when Rock Band one came out but how much did they expect to accrue after EVERYONE had plastic instruments? theres only so much that market can take. Why not just have harmonix make something else? I don't get it.

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ajamafalous

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Edited By ajamafalous
@FreakAche said:
" @ajamafalous said:
" @FreakAche said:
" @BananaKid said:
" Music games are not selling and Rock Band 3 is, for a music game, pretty inaccessible. I'm not super surprised. "
Have you played Guitar Hero? That's the definition of an inaccessible music game. "
What would you say makes Guitar Hero inaccessible? "
It's got much less genre variety in it's soundtrack and DLC. That, and the charts are generally much more complicated (with the exception of Rock Band 3's Pro Mode). "
I wouldn't say that less genre variety would make the game less accessible. Though you're right about the charts, though that too may be a product of the genres they spotlight.