Before getting into my review, here is an important tip:
AUDIO LAG!!! If you are experiencing audio lag, the problem is the HDMI cable. You need to run the audio from the RCA (red and white) cables through the tv, headphones, or an external stereo/surround sound system. Doing so will fix the annoying audio lag problem I'm sure most people will experience. So if you buy the game, don't forget about this tip!
UPDATE:
FROM MY EXPERIENCE, THE HDMI CABLE WASN'T THE ISSUE, THE TV WAS! I have played the game on two tvs and I have used two different cables. The first tv I played on has bad lag, and I can't seem to find any settings to fix it. However, on my tv at home, I can play with an HDMI cable without any problems. If you have lag on your tv, try turning off any special features in your tv settings. If that doesn't work, use the RCA cables as described earlier in my review.
Here is a little background about myself to support my experience playing the game:
I am a musician and I've played guitar for a number of years. However, I've always played basic rhythm guitar. I never got around to learning scales, solos, power chords, ect... only regular chords for rhythm.
Now for the game. I have only played it for about 2 hours so far, and I am really enjoying the experience. I'm a pretty busy person, and I often feel guilty when playing video games because even though I do enjoy playing, I feel like it eats up time I could use for more productive activities. Finally, I have a game that I don't have to feel bad about playing for hours on end! I am a worship leader at a church, so guitar is part of my job. Not only is this game fun to play, but I can see how it is going to help my abilities on guitar grow tremendously! The interface is similar to Rockband or Guitar Hero, but the developers did a superb job at modifying the familier interface to work well with a real guitar. It may feel awkward at first, but stick with it, and you will get it. After a few songs, I felt like I was playing Guitar Hero, and it was mind boggling to think I was playing a real guitar. Considering I already have experience playing, the game felt oversimplified starting out, but it was still worth playing to get a feel for the interface. It didn't take long for the game to start getting a little challenging. The game adjusts on the fly to how well you are playing, so don't worry what level player you are. If you have never played guitar before, it will keep things simple for you. If you are an expert on guitar, it may take a little longer, but it will adjust to your skill level. There is so much to say about the game, but I'm limited on time. I just wanted to get a quick review out for anyone considering the game so that you can know this is a game worth buying. If you have any desire to learn or improve on guitar, BUY THIS GAME!! If you have a hard time getting motivated to practice your guitar, BUY THIS GAME!!! If you loved the Rockband and Guitar Hero games, then BUY THIS GAME and quit waisting your time on a plastic toy!!!
UPDATE: Safety Concern
Something to be careful about that the game doesn't monitor is correct technique. You can easily get sloppy when trying to sightread the game interface, and doing so can damage your hand/wrist. If your hand starts hurting, take a break, and make sure your technique is good. I pushed myself to extended periods playing bar-chords incorrectly, and I started getting sharp pains in my wrist and hands. I'd find it hurting later in the day simply driving my car, and I was concerned of getting carpel tunnel. Now I do a couple scale warmups before playing, and I try to stop if my hand starts hurting.
UPDATE: 5-1-2012
I haven't played this game in a while, and I decided to pull it back out. I downloaded the latest patch, and I'm really happy for the updates!
So far what I've noticed:
1) The Sony wireless headset now works! Part of the reason I quit playing the game is because I now use a monitor without speakers, and a headset is my only audio source. For a while, the Sony headset and the guitar cable could not work together. This is no longer an issue!
2)I hated that you could not set the difficulty level of the game in riff repeater mode. It would make you practice at an easier level, and when you passed it, it would bump up a level. The problem with this is that you had to relearn the riff every time. Now, you have the option to jump the difficulty all the way up. Doing this in the mode that slows down the music allows you to memorize the actual guitar part (rather than relearning dumb down versions).
3) Another thing I didn't like about riff mode was that you only got 5 tries. Now, if I'm remembering correctly, you get 30 tries. These additions to riff mode make this game just about perfect for practicing guitar.
4) Precision Tuning - The basic tuning will say the guitar is in tune even if it's slightly out. Although it's not perfect, choosing to use the precision tuning option makes it easier to get perfect pitch.
I'm excited to see that the company is listening to feedback and improving the game without charging money for a new version. There are plenty of songs to build my skills, they have a decent amount of dlc out if I get bored, and I'm sure I'll get Rocksmith 2 if they ever release one!
UPDATE 8-22-2012
The game now supports bass for all of the songs! If you buy this edition (or already have it), you have to pay $30 for the bass DLC. If you don't already have this game, you might want to consider buying the new edition that includes both guitar and bass. Depending on when you read this review, Aamazon says the new version comes out (or came out) October 16th, 2012. I purchased the DLC, and I think they did a great job with it. Most songs are pretty easy compared to guitar, but that's not the game's fault. The bass parts just tend to be easy for a lot of songs! If you have any interest in playing bass (or know someone who does) it should be a no brainer! You can also plug a guitar and bass in at the same time and play with a friend if you have an additional USB to 1/4 cable.