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Clients including Van Halen, the Eagles, Steely Dan and Guns N' Roses "all have deals of varying types in the works with one or the other or both of these companies," says Mr. Azoff, referring to the makers of Guitar Hero and Rock Band.

But some bands have resisted the call of the new medium. Led Zeppelin's thundering riffs are among the most sought after by music game makers, but the group's guitarist, Jimmy Page, and his bandmates have repeatedly turned down offers from both Activision and MTV, says Peter Mensch, a partner at Q Prime Management, which manages Mr. Page, along with Metallica and other acts.

The sticking point: The band isn't comfortable with the prospect of granting outsiders access to its master tapes, a necessary step in creating the games. "It ain't about the money," Mr. Mensch says.

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