A screenshot from The Beatles: Rock Band. Credit: MTV Games.

The music video game genre has been in a profound slump this year, with sales down 46% so far, according to the NPD Group.

Part of that is due to the recession, of course, but part of it may be waning consumer interest in Guitar Hero and Rock Band. The games' publishers, Activision Blizzard and MTV Networks (owned by Viacom) have seen the impact on their bottom lines and are taking big steps to shake up their businesses as a result.

As a story in today's Times explains, the biggest change comes in the form of The Beatles: Rock Band, a risky bet worth tens of millions of dollars in royalties alone.

But as MTV launches the game with its distribution partner, it's also implementing a new strategy: Flee the hardware business. Sure, there's a limited-edition, $250 hardware package, but quantities are limited. And there's a $160 "value bundle" featuring original Rock Band hardware that MTV is eager to get rid of.

If you're new to music video games and want controllers for The Beatles: Rock Band, MTV has a preferred solution: Buy Guitar Hero.

“The opportunities around hardware are really limited,” said Scott Guthrie, general manager of MTV Games. “We are getting into a focus on software and [downloadable song] revenue streams.”

MTV Games senior vice president of electronic games and music Paul DeGooyer puts it even more abruptly: “Let others take on the burden of getting those super-tight margin instruments out there."

The "others," of course, is really one company, Activision Blizzard. And its CEO Bobby Kotick admits it's time for a change as well.