MTV Networks is watching the video gaming industry with hungrier eyes than ever, being well aware of what the youth like to spend their free time on these days. To this end, it plans a two-year $500 million investment into gaming. One of its most signifigant moves was the acquisition of Guitar Hero and Rock Band developer Harmonix.

"As we take our brands narrow and deep to serve our targeted, niche audiences, we're putting well over $500 million behind building our games business across all of the brands in our portfolio," MTV Chairman and Chief Executive Judy McGrath told Reuters.

"I'd like to see more game applications on some of our current big brands across the music group," McGrath said, referring to developing games based on the networks' range of shows.

Not all are convinced MTV will be able to find its pulse in gaming, even when it has the money. That said, analysts feel MTV's chances of making a name for itself in the industry will improve if it focuses on online casual game development for web versus the traditional game platforms. Of course, we cannot discount the impact EA and Harmonix's Rock Band stands to make, and this title could signifigantly boost MTV's confidence in gaming.

"Media companies are crazy trying to bring video-game development in house," Wedbush Morgan analyst Michael Pachter said about developing complicated console games. "They act like anyone can do this. The fact is not everyone can."

[MTV Networks President of Global Digital Media Mika Salmi] said online games gives MTVN an opportunity to experiment with business models. Neopets has begun generating revenue from sales of items for virtual pets, and mobile games lets it play with subscription services.