Citing the lower revenues brought in by the genre, Activision Blizzard announced that it will cease production of new Guitar Hero games and dissolve its development team. Additionally, the company has cancelled True Crime due to quality concerns.

While revealing its quarterly earnings today, Activision Blizzard revealed two major cancellations, with a third title taken off of this year's schedule. The biggest move is the elimination of the Guitar Hero and DJ Hero franchises.

Due to the declining revenue of the music game genre, the company has disbanded the Guitar Hero business unit and will no longer be creating any more titles in the franchise. The company will still release downloadable tracks for both titles.

One of the company's biggest upcoming releases has also been dropped. True Crime: Hong Kong will not be published by Activision Blizzard, with the company's CEO Eric Hirshberg bluntly stating "it wasn't going to be good enough." In the company's press release, the cessation of both franchises were "based on the desire to focus on the greatest opportunities that the company currently has to create the world's best interactive entertainment experiences."

While the company didn't announce a cancellation of the Tony Hawk franchise, Activision Blizzard revealed that there will be no skateboard game releases for 2011 after two consecutive years of massive sales decline.

Even though the nixed IPs were the biggest news of the earnings report, the company did have a new reveal in the form of Beachhead, a digital platform for its popular shooter franchises that will allow console gamers to interact with their PC counterparts. The company also announced a slate of licences that it will release games for in 2011, including Spider-Man, Wipeout, Family Guy, Cabela, Bakugan as well as tie-ins for this year's X-Men and Transformers films.

We will bring you additional details for the recently-halted franchises as we learn more. In the meantime, what do you think of Acitivison Blizzard's business decisions?