If you continue getting it wrong, it slows the tempo until you can play the passage successfully. I needed to practice, but I found the ever-slower pace disconcerting. Read the music, play the notes. Guitar instruction is vastly different. Except for classical guitar, there's less emphasis on sight playing from sheet music.
Most guitar instruction is a kinesthetic experience.
You watch the instructor play a passage, then you play it. Fortunately, you can bypass the game and go straight to the lessons. These lessons, a big improvement on Alfred's well-regarded guitar method books, include accompaniments that get you used to playing with a band right from the start. Even if you don't use the pickup, Guitar 101 is a thorough, enjoyable course that trains you to be a guitar hero. While most other courses start you playing chords and open strings at the nut, Guitar 101 starts you at the seventh fret.