Viacom to Sell Video Game Franchise

By Robert Davis
Nov 11 2010

Viacom, based in New York, announced today that they are selling Harmonix, the company behind the hit video game franchise “Rock Band.”

For the past two years the video game division has been a drag on the total profits for Viacom. As shoppers continue to use discretion when making purchases, expensive games like Rock Band, which require accessories to play, have been at the bottom of the list.

The profit margins have been further slowed by the problems with the film industry, the main focal point for Viacom. Last year they had the megahit “Transformers: Revenge of the Fallen” but have thus far been unable to create such magic again.

The company has managed to remain afloat despite the problems with the economy. Selling off Harmonix will free up $230 million in operating expenses for Viacom, money that will then be filtered into the film division.

The blend of slow video game sales as well as low revenues from movies has created a dramatic shortfall in the filming budget for the coming year. However, the studio is currently working on the next Transformer movie, which is sure to be a massive draw at the box office.

However, problems on the movie set for the upcoming Transformers movie may cost the studio even more. An extra on the film was severely injured when a tow cable snapped and sliced through her head, leaving her almost completely paralyzed. The woman has filed a suit against Viacom and the film’s producers.