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Yesterday, TheStreet.com published an interesting article giving the business speculation perspective on the impending Electronic Arts' Rock Band vs. Activision's Guitar Hero showdown.
While it seems the conclusion is that there is enough space in the emerging "Music Games" segment for both games, there is still ample reason for Activision to fear a hit in their sales.

My thoughts are that Rock Band requires a significant upfront cost (rumored to be $199) and requires at least two real-life friends or the desire to go online to find bandmates. It all just seems like a very high hurdle to clear.
Guitar Hero will continue to appeal to the soloist in us all. The spotlight if firmly focused on the one-player experience, although the next version of the game will allow for competitive online shredding.
Reading through various "hands on with Rock Band" reviews, however, I can't dismiss the fact that everybody who has played it has loved it. The same goes for Guitar Hero.
Only time will tell who will win the battle of the bands.