Los Angeles - Activision's (NASD: ATVI) "Guitar Hero III" is the first video game to surpass $1 billion in sales, but the current iterations of both that franchise and MTV's (NYSE: VIA) "Rock Band" sold fewer copies last year in the U.S. than their predecessors, according to market research firm NPD Group.

Variety reported that "Guitar Hero: World Tour" sold 1.5 million copies in 2008 -- down 55% in sales compared with "Guitar Hero III," while "Rock Band 2" sold 809,000 copies last year.

NPD noted that the two franchises were off 12% in sales last year, while revenue from the broader music-themed game genre was down 6% in November 2008.

"I do believe the music and rhythm category is definitely here to stay, and it will always have a large and loyal market base," noted analyst Jesse Divnich, of Electronic Entertainment Design and Research.

"I believe, however, we may have seen a peak in sales from the category."

Despite the sales downturn, both "Rock Band" and "Guitar Hero" continue to generate revenue through sales of downloadable songs for the games, which to date total 30 million and 25 million units, respectively.

Related Links:
http://snipurl.com/9zbyj (GameDaily)

http://www.variety.com/article/VR1117998291.html

http://www.npd.com