It’s hard to argue thatRock Bandisn’t a really, really big success. Just recently it was revealed that the latest edition of the game,Beatles: Rock Band, soldpretty darn well in its first month. One would then assume that some of the money that Viacom fills their swimming pool with constantly is made up of the mad profits from the series. It seems, however, that at the momentRock Bandis more of a leak in that pool than a hose adding more to it. According to some inside sources atThe Kartel, a recent report from Credit Suisse highlights the fact that the franchise will lose Viacom $90 million by the end of 2009. While credit Suisse simply showed that the problem was there The Kartel guys highlight six reasons that such a successful franchise could still be in the red.
It can also be noted thatRock Band‘s sales haven’t always beenthat fantastic, as a soft retail year brought them down. With all this it becomes a bit clearer to see how Viacom could still be $90 million in the hole when it comes toRock Band. However, Credit Suisse also says that the company shouldn’t fear as they should be able to move into profitability with the franchise some time next year. Investing in a quality product for long term benefit instead of quick initial gain? Sounds like Wall Street needs to learn a thing or two from Viacom.
