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But Harmonix's joy was tempered. In the summer of 2006, game giant Activision acquired Red Octane and the Guitar Hero name for $100 million. Suddenly, Rigopulos and Egozy found themselves in competition with their old pals. "Activision sort of swallowed Red Octane whole," says Egozy, "and we lost touch with those guys." As with many breakups, bitterness ensued. Harmonix sued Activision this past March over unpaid royalties for Guitar Hero III, but then quickly withdrew the lawsuit to negotiate. Neither company would comment on the talks.

With MTV's backing, Harmonix could finally make the game of its dreams: a full-on rock show. To make it look authentic, the company hired real musicians to prance around a New York soundstage wearing electronic bodysuits that would capture their movements so they could be replicated by the game's avatar rockers. "It was terrifying, dancing around in a spandex suit with silver balls taped all over me," says Bryn Bennett, lead guitarist for Bang Camaro, who acted out the part of AC/DC ax man Angus Young.

The result, though, is a game that analysts say is the most realistic rock-star simulation yet. "Rock Band is a huge evolutionary step from Guitar Hero," says game analyst Billy Pidgeon of IDC Market Research. It was also a huge leap in price—$170. At that rate—and lacking a well-known brand—Rock Band has been outsold nearly four-to-one by Activision's Guitar Hero III, which launched in October for $100. But by February, Rock Band was hauling in more revenue than Guitar Hero III, according to NPD.

All that rock-and-roll gold is attracting competition. Coming in time for the holidays: Guitar Rising and Guitar Wizard, two games that loosely follow Harmonix's fretboard format, but connect it to real guitars. Disney has Ultimate Band this fall. And Activision is said to be developing three new versions of Guitar Hero, including one that features a microphone like Rock Band. (Activision didn't respond to a request for comment.)

The most buzz, though, is about what Harmonix will do next. Add a keyboard? A turntable to scratch out hip-hop tunes? An iPod version of Rock Band? (Harmonix already has an iPod game called Phase.) Rigopulos and Egozy won't reveal their next act, other than to admit they're trying to land songs from bands like the Beatles, U2 and Springsteen. But something's up. Harmonix is looking to hire 70 more employees. The biggest hint comes from Greg LaPiccolo, Harmonix's product-development chief and former bass player for the indie band Tribe. "Now it's like karaoke," he says. "The long-term ambition is to give players more creative freedom." That means you'll eventually be able to create your own guitar leads and wailing vocal fills. It's unclear, of course, whether that presumed artistry will help you gain or lose points in the game.

With Patrick Crowley

With Patrick Crowley

© 2008

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