Genius Products Inc. (GNPR)

[fredman]

As Sales Slow, Music Game-Makers Turn To Hip-Hop And Electronica For Growth

Just how important is the upcoming "DJ Hero" game to Activision Blizzard?

So important that the videogame publisher tried to buy a rival game that was scheduled for release before "DJ Hero" hit stores. When that failed, Activision acquired the game's developer in hopes of stalling the process.

At least that's the claim made in a recently resolved lawsuit against Activision by Genius Products, the publisher of "Scratch—The Ultimate DJ." In March, a Los Angeles County superior court judge ordered Activision to return to Genius the "Scratch" source code, which Activision had acquired earlier this year after buying 7 Digital, the company that was developing "Scratch" for Genius.

Until this drama unfolded, "Scratch" was merely a footnote in the music-game market. Genius Products is a DVD distribution company that's never been involved in making a videogame before, and only a handful of press outlets have mentioned the pending "Scratch" game. Activision, meanwhile, has racked up more than $2 billion in sales from its "Guitar Hero" franchise alone and is one of the largest videogame publishers in the world.

But the David vs. Goliath tale drummed up all kinds of attention for the smaller game's expected June release, which may have been what Genius Products intended all along. And the fact that Activision would walk into this mess speaks volumes about how crucial "DJ Hero" is to music gaming.

Source: http://www.billboard.biz/bbbiz/content_display/industry/e3i3744fbefe2a504e9c0d3d0544ab8c955

If anyone has a billboard account, please go here and also please kindly copy us on the full story which includes the "underserved" demographic Activision is targeting, sales projections for "DJ Hero" and more: http://www.billboard.biz/bbbiz/content_display/magazine/upfront/e3i63dc53a7d1ec558bf89f8f4abf3ea5e9

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