Business

BATTLE OF THE VIRTUAL BANDS

Harmonix CEO Alex Rigopolous is at the center of a high-stakes battle between video game rivals Activison and MTV Networks, as the two companies square off this Christmas with titles for wannabe rock stars created by the software development guru.

Activision’s “Guitar Hero 3: Legends of Rock” is the latest installment of the wildly popular “Guitar Hero” franchise, Rigopolous’ original hit. In the game, which was launched over the weekend, players simulate shredding classic guitar riffs using a toy guitar equipped with buttons instead of strings.

Next month, MTV Networks is teaming with Electronic Arts to deliver Rigopolous’ latest creation, “Rock Band” – a new game that targets virtual singers, bass players and drummers, as well as axmen. Players form their own virtual bands with friends, or go online to play with others.

“Rock Band,” which features music from the Grateful Dead, Metallica and The Who, hits stores Nov. 20 and retails at $59.99, not including instruments at $80 a pop. “Guitar Hero 3” costs $49.99, minus a guitar controller, which goes for about $40.

Activision, MTV, and EA all have plenty riding on the releases.

Activision spent $100 million last spring to acquire Harmonix’s publisher Red Octane, which controlled the rights to “Guitar Hero.” Saturday’s release, featuring music from Aerosmith, The Who, The Killers and Bloc Party, marks the first meaningful update to the franchise since completing the acquisition.

However, the deal didn’t include Harmonix. Rigopolous subsequently sold that company to MTV Networks last fall for $175 million.

Meanwhile, perennial video game publishing top dog EA, which is distributing “Rock Band,” is looking to the title to help fend off mounting competition from Activision. It vaulted ahead of EA for the first half of 2007, according to research firm NPD, riding the success of “Guitar Hero.”

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