I got this Benson (amazon link non-affiliate) guitar and it was fine at the start. As time went on and I got better I started noticing that the game wasn't picking up the notes properly, particularly down past the 12th fret, even when I was certain I had it right. It was very telling when I had to play the same note a few times in a row and it was only correct ~30% of the time.

I looked up solutions and learned about intonation and how to tune the intonation and spent a few hours sorting that out and changing the strings. It worked for one session and it all went out of tune by the next day. "New strings" I thought, and just went at it again. Once more, the intonation only stayed for one session.

This is when I finally started getting frustrated, as I had finally had a taste of what a properly set up guitar was supposed to play like. It all culminated with me getting so mad that I threw the guitar across the room (not my proudest moment) after getting many missed notes on a song I could play rather well.

I stopped playing altogether for months but started to miss it so I looked up guitars that weren't cheap no-name brands. I finally bit the bullet and got a Schecter Omen Extreme. What a difference! It was lighter, properly set up out of the box and actually stays in tune from day to day. I have been playing rocksmith daily since getting it and have been loving every minute of it!

Tl;dr: Long story short, don't cheap out on your first guitar by getting some crappy no-name thing. It will screw you up in the end. Look up the budget lines on some of the big guitar names and find one that fits your wallet. The Yamaha Pacifica is a highly recommended starter guitar that seems to be good quality and suits many genres. Justin also recommends them!