A spokesman said they are ditching the franchise because "the popularity of music-themed video games has faded" "We simply cannot make these games profitable based on current economics.". "due to continued declines in the music genre, the company will disband Activision Publishing's Guitar Hero business unit and discontinue development on its Guitar Hero game for 2011."
Music games are expensive with licensing fees for the songs and the cost of making the hardware such as plastic guitars and microphones.
Fourteen versions of Guitar Hero have been released since it launched in 2005. The games included Guitar Hero World Tour and Guitar Hero: Warriors of Rock with celebrity specials from Aerosmith, Metallica and Van Halen.
Activision Blizzard will now support their Call of Duty moneyspinner since launch in November, Call of Duty: Black Ops has smashed retail records and pulled in more $1 billion (£621.9m) in sales.
Last year, Viacom sold the unit behind the Rock Band video games because it was also losing money.
They will continue to sell and support its catalogue of Guitar Hero titles.
Activision Blizzard are also cutting 500 people from its 7,000 global workforce.
Guitar Hero was one of the biggest selling franchises in video gaming, but its sales have fallen recently.
The last entry in the series, Guitar Hero: Warriors Of Rock, did all right critically, but it sold less than 100,000 copies during its first month in the US."
Also canceled - True Crime: Hong Kong was to be the third title in the series of underworld shooters. It didn't get very good reviews at E3 and looked likely to fail so they cut their loses and canceled.
More Guitar Hero posts here on gamezplay...