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The reason music games "crashed" is because it has already been perfected, FPS can always be improved until its as realistic as real war except you don't bleed and die yourself. Also FPS is a core genre which means that there will always be gamers who will buy it, music games aren't really core, casuals usually move on to the next thing, which looks to be Kinect atm.

Also, why buy a new music game, when you can just download new songs to your old one? A new fps at least brings some content.