VIDEOGAME RIVALS ARE READY FOR VIRTUAL WAR

LOS ANGELES – The two biggest rivals in the videogame industry are set to strut their stuff at the biggest videogame conference this Tuesday.

Harmonix, the Electronic Arts-owned creators of the best-selling “Rock Band” franchise, will be showing its highly anticipated “Rock Band 2” against “Guitar Hero IV,” from Activision’s Red Octane unit.

The onetime collaborators split apart last year when MTV acquired Harmonix, and both have fought tooth-and-nail to dominate the lucrative music videogame market.

So far, Activision has the upper hand, as “Guitar Hero III” sold 2.7 million units last year compared to 1.1 million units for “Rock Band,” according to the NPD Group. And, as the traditional music industry slumps, the videogames are proving their ability to sell songs as well. More than six million songs have sold from the “Guitar Hero III catalog, which charges up to $2.50 a pop.

For “Rock Band,” over 15 million songs have sold from its online store since it debuted last fall.

The fight for music dominance is just one of the many battles that will be fought at the Electronic Entertainment Expo.

Filled with industry insiders, tech geniuses and money-hungry executives, the LA-based event is a preview of wares coming this holiday season.

While the US economy flounders – with markets tanking and consumers pulling tight their purse strings, videogame sales are proving to be a rare bright spot. US videogame sales are expected to grow by 16.7 percent this year, off a robust $12.1 billion in retail sales in 2007.

MTV Games and Harmonix are releasing 12 “Rock Band” songs on July 15 from The Who – ranging from “My Generation” to “Who Are You” – that all utilize the band’s master recordings. The tracks will be available for $1.99 individually or $19.99 as a set.