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Viacom Demands Refunds of Harmonix Rock Band Bonuses
Viacom didn't become one of the most trusted and beloved companies in the world by accident; it's moments like this that remind us just why giant media conglomerates are right up there with puppies, rainbows, and free beer in the hearts of Americans. In 2008, when the music genre was booming, Viacom doled out over $150 million dollars in performance-based bonuses to Harmonix employees who worked on the Rock Band franchise. But that was then and this is now. After a year that saw sagging sales for both Rock Band and its competitor Guitar Hero, the company wants its money back.
Viacom recently cited flagging sales of Rock Band as one of reasons its net sales were down for the quarter (although Viacom's overall profits were up substantially). As the action in the music genre shifts away from the expensive, profit-rich hardware bundles to smaller ticket items like individual discs and downloadable content, it's clear that the total sales dollars have suffered as a result.
The bonuses were awarded based on the terms of the 2006 deal in which Viacom subsidiary MTV Games acquired Harmonix, so it seems tacky to demand the awards back now when times are tougher. AC/DC once said that it's a long way to the top if you wanna rock n' roll – it's a good thing they never had to deal with the corporate jungle.
[via Gamasutra]
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