Gamertell

Videogames are certainly a lucrative business and MTV has decided to continue investing. In the past, MTV has made various videogame-related business acquisitions like Harmonix (developer of Guitar Hero and Rock Band), Atom Entertainment and Gametrailers.com to name a few. It has now investing an astronomical $500 million for continued videogame operations

Judy Mcgrath, Chairman and CEO MTV, said that MTV wants to more deeply penetrate the video-gaming business. She expects more games based on popular MTV brands to vie for gamers’ attention in the future.

Wedbush Morgan Securities leading video-game analyst Michael Pachter advized the media conglomerate to steer clear of in-house games development. He feels that media companies are crazy, trying their hands on videogames. UBS internet analyst Ben Schacter has a slightly different opinion though. He believes that media companies can succeed in the web games genre.

History and analysts are staked against media companies enjoying success with video games. But MTV has enjoyed considerable success with online properties like Xfire.com, Gametrailers.com, Neopets.com and Addictiongames.com and is betting big on its upcoming title, Rock Band. It is also focused on mobile games and has signed deals with Nokia and Verizon wireless. MTV will probably look to target all current game platforms with these $500 million dollars-consoles, PC, web, handheld and cellphones.

Warnings from discerning game analysts and history shouldn’t deter MTV in any way, as history itself shows that both have been proven wrong from time to time . The success or failure of its gaming venture would rest on the quality of the games. Besides, many game developers haven’t done justice to some marketable media properties, whether it be movies or TV shows. However, in-house development of the games would mean that the people developing the games would have a deep understanding of the game’s subject matter.

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