I've heard about Rocksmith lately. I'm a beginner self-taught guitarist, and I was wondering if any of you have tried it and recommend it. I've bought several books and sometimes I reach a dead end, of sorts, with the books. Is it worth the 50 bucks or so to try the software?
One mistake that a lot of beginners tend to make, and I certainly did, is confuse playing songs with practicing. It's one thing to play along to favorite songs or learn a new piece, it's another thing entirely to practice for the sake of improving technique and ability.

Rocksmith will help you learn licks and whatnot, but if you're a beginner this isn't going to be of too much use to you, and you may get frustrated if it throws out songs that are too difficult, or complacent once it dials down the difficulty (by cutting note density as rocksmith does.)

What I would highly recommend, is finding some friends, whether in person or via Skype and play with them. It doesn't matter if they're at your level or not, but playing with and around other people will help you more than anything else.

What you need are some goals, what do you want to be able to play in a year or two? What kind of music do you want to be playing generally? Why do certain songs give you trouble, is it the alternate picking, the chords, the sweeping or all put together? Once you identify what gives you trouble, focus on improving that specific technique.

As someone who was self taught, I cannot emphasize enough the need to play with others. Self taught players have a habit of neglecting rhythm and many find it difficult to keep time. Also, playing with others is just plain fun and tends to encourage you to improve more than any video game possibly could!
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For learning songs and how to play songs, then it's not too bad. It's a much less efficient but more entertaining version of Guitar Pro.
I have tried it. But I'm an absolute beginning.

I think it could help. It's not a one stop solution by any means. It does have nice exercises in the guitarcade that may be helpful for you.

To me, what it does do is help keep the mundane exercises a little more fun and less of chore, especially if you like video games.

That said, it's going to depend on what you're having trouble with and whether or not it covers that area. In general, I don't see it hurting your skills, and probably can help, in conjunction with other learning tools.
Rocksmith does not help develop great technique (and may even be detrimental in this aspect), but it will broaden your musical tastes and keep you motivated.

Would I recommend you get it? If you have the money for it, sure. It's pretty fun, and it'll build up your repertoire very quickly if you like to play it, but if you really want to get better quickly, your best bet is still to get a teacher who knows what he's doing.
Pretty much what everyone else has stated.

It is fun, and can get a beginner to play actual notes in actual songs quickly.

Its not going to provide a good comprehensive base for really grasping the instrument.

But it is and can be a good tool for learning and this is just the tip of the iceburg. If someone can combine this with something like Justin Guitar... it will be phenomenal. The issue is, you need a good deal of monotony which is "boring" and would affect the sales numbers. Like someone said, there is a large difference between "practice" and "playing". It is good to get the fundamentals down as building blocks.
Like, I can't really afford lessons. I can read music, since I took piano for 5 years when I was younger, and I can play a large number of selections by ear on the keys. What do you recommend I do to help enhance my finger strength/dexterity on the fretboard?
No way to go about it other than actually spending time on the guitar, whether it's practicing or playing songs. I learned classical piano for 2 years, and it became very clear that there was virtually nothing about the technique of piano that could translate over to the fretboard

If you took piano for 5 years, I think your general dexterity isn't a problem. It's just a matter of you getting used to being on the guitar.
I think it's amazing if you have a basic grasp on technique. In my opinion, the best way to get better at guitar is to learn more challenging pieces, and the game forces you to set goals, it makes you want to achieve a certain level of playing to be able to perform a piece, and that's fantastic. However, if you haven't got a basic grasp on technique, the game can't correct you. Ideally, it'd have a guitar neck sensor which sensed your hand positioning and made the game say things like; 'Ha! You're attempting the chromatic run in Bat Country without classical position? L2play n00b' and the like. However, as mentioned, if you are determined to play guitar and want to practice and really learn, Rocksmith is a great tool!