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there actually IS a market for these sort of games still. It is FUN for a LOT of people to play mini games related to jamming on a guitar or instrument of some sort. great for parties and gaming with friends at the same house, same as something like karaeoke (and that hasn't went out of style in the last 50 years).

 

the real problem is this: lack of innovation AND cost. A lot of people don't want to pay 100$ for a periphial (guitar/ mic/drums/etc.) to play a game. now maybeeee they woul be willing to if there was a reason to, but the reality is that the newer Guitar Hero AND Rock Band games are just too similar to before. nothing revolutionary or different.

you can't sell the same wheel 10 years later (practically) for a kind of pricey amount and expectc people to jump on board. hell, who knows how many people still have their old Guitar Hero / Rockband sets. probably a lot of them are sitting in people's garages. My point is that the idea is still popular I think, its just unless its updated people don't have a reason to care.

It also doesn't help something like Rockband's case that it DOES have to compete with the same exact thing existing in arcades everywhere (and, yes, arcades are still somewhat alive, at least in busy city areas and touristy spots) as well as has to compete with traditional things like restauraunts and coffee shops having karaoke nights. I'm putting way too much thought into this but the idea is in the end if you don't update your product no one will care. And slight game mode changes or adding songs is not enough