The lack of interest in music games is partially to blame.
The demand for DJ Hero, a Guitar Hero spin-off title based around the DJ culture, is "well below expectations" according to analysts Cowan and Company. They believe that the slowdown of interest in music games, fading buzz around the Guitar Hero franchise, and rising price of music games during an economic recession are the culprits.
Analyst Doug Creutz mentioned that "On DJ Hero, despite some recent positive comments from company management about pre-orders, we remain very cautious about the title's prospects at launch".
According to a survey of online retailers, demand for the title is well below what was expected to be a successful launch. Creutz predicts that the title will sell around 600,000 copies in the US during its fourth quarter (down from the 1 million he originally forecasted), but he expects that a sequel will help establish a brand for Activision.