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Can 'DJ Hero' yank Activision back from a market slide?

By Matthew Shaer / July 29, 2009

The controller for 'DJ Hero,' a new video game from Activision, the makers of 'Guitar Hero.'

PRNewsFoto/Activision Publishing, Inc.

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It doesn't get much more self-consciously hip than this: A jet-black "Renegade Edition" plastic turntable, a handful of unreleased tracks from rappers Jay-Z and Eminem, and a collectible carrying case designed by graffiti artist Shepard Fairey. But will it be enough to pull Activision out of its slump?

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As MarketWatch reported yesterday, Activision has watched its shares drop nearly 14 percent over the past month – a dip that puts the game company well behind its competitors. All this, of course, in spite of the fact that Activision will publish the most hotly-anticipated holiday titles, including "StarCraft 2" and "Modern Warfare 2."

"DJ Hero" is aimed directly at hip-hop fans – a sizable market, to say the least. And to judge by the success of the "Guitar Hero" franchise, which Activision publishes, the game has a good chance of spinning up some major revenue for the company. The question here is one of price. Although Activision hasn't yet listed prices for the game, GameStop says the regular edition will go for $120. The price for the "Renegade Edition"? Quite a bit more, we're guessing.

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