Despite the challenges the music gaming industry has been facing of late–such as sales dropping, yipes, almost 50 percent in the U.S. this year–the top companies in the field are still churning out new products like it’s nobody’s business.

Case in point is a spate of new products from the Guitar Hero division of Activision Blizzard, which is coming out this fall with three separate major launches, starting tomorrow with the GH5 and including the hip-hop flavored DJ Hero in late October.

Here’s BoomTown’s sneak peek from GH’s HQ in Silicon Valley.

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Let’s get this out of the way: BoomTown completely missed Lionel Richie perform, cooling our heels outside behind the rope line at the MySpace party in San Francisco last night.

Major bummer.

That aside, I did finally get in and did a video at the rocking event, which the SoCal-based social-networking site threw after the day’s proceedings at the Web 2.0 Summit.

It was the scene of a lot of wild partying, with a lot of swinging and packed most of the night, even as the supposed gloom of the econalypse was settling over Silicon Valley.

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On Wednesday, the annual Web 2.0 Summit kicks off in San Francisco.

The lineup is particularly good this year and it is also a perfect time to take the temperature of the Internet’s movers and shakers, given all the hubbub of late with the weak economy.

Speakers will include bicycle champ Lance Armstrong, Yahoo CEO Jerry Yang, former VP Al Gore, Google.org head Larry Brilliant, Paul Otellini of Intel and Facebook’s Mark Zuckerberg, among others.

But, best of all for BoomTown, singer Lionel Richie will be performing at a MySpace Music party.

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