The Financial Times reports that Apple Corp., which represents the Beatles catalog, has been holding talks with both Activision and MTV about making a Beatles-themed "Guitar Hero" or "Rock Band" game.

It's a bit surprising given that Apple Corp. still hasn't reached a deal with Apple Inc. (or anyone else) to sell Beatles tracks online. But it would also be a big step forward for either of the major music games and for videogaming in general into the mainstream.

Given how fiercely Activision and MTV already compete to lock up bands exclusively for each of their games, you can bet that the bidding will be fierce if Apple Corp. is really ready to make a deal. The FT says a deal could be worth "several million dollars," but I would say that's probably that's a conservative estimate given what the royalties on a game where players can live out their Beatles dream would probably be.