Music games are narrowing their audience, according to InstantAction CEO Louis Castle.
He said that the current business model means publishers are having to spend more money on developing music titles to receive diminishing returns.
"They have to do more and more, and they have to pay more and more, and the audience is getting smaller, because they are choosing a narrower audience. It's a collapsing pyramid."
Castle also noted that browser application InstantJam, which allows users to play and download song MP3 files, will be attractive to both players and music companies.
"Our game starts off with a pretty big base of thousands of supported charts, so it's the opposite, and as new songs come out we're going to be adding to it, and motivate people to go buy songs who have never bought songs," he said.
"It gives to the music industry what they've been trying to do, which is, as music expands, expand the business, expand the opportunity for them to get them a lot more ...