Disappointing uDraw sales spur THQ to lower outlook

Publisher lowers third-quarter net sales outlook by 25 percent based on weak uDraw sales on Xbox 360 and PlayStation 3.

In May this year, THQ revealed its plans to release an Xbox 360 and PlayStation 3 version of the uDraw tablet, which allows users to create their own artwork. The previous version of the accessory launched in November 2010 for the Nintendo Wii, shipping 1.7 million units during THQ's 2011 fiscal year.

It now appears that the launch of uDraw on other consoles was not a good move for the publisher, with THQ today reporting that "weaker-than-expected" initial sales of the tablet on the Xbox 360 and the PS3 was a driving factor in the publisher's move to lower its third-quarter earnings. THQ made the decision to drop its net sales targets for the third quarter by 25 percent below its previously announced guidance of $510 million to $550 million.

THQ's uDraw on the Wii was more of a hit than on Microsoft and Sony platforms.

The company updated its outlook for the fiscal 2012 third quarter--which ends December 31, 2011--with THQ president and CEO Brian Farrell looking toward titles like WWE 12 and Saints Row: The Third to help drive sales until the end of the year.

"Despite uDraw's strong success on the Wii in fiscal 2011 and market research indicating strong demand for uDraw on the Xbox 360 and PlayStation 3, initial sales of our uDraw tablet and software on these high-definition platforms have been weaker than expected," Farrell said in a statement from the publisher today. "WWE 12 and Saints Row: The Third are expected to perform at or better than the levels we discussed on our fiscal 2012 second-quarter earnings call."

THQ expects to announce its fiscal 2012 third-quarter results and update its fourth-quarter expectations in early February next year.

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Discussion

29 comments
Yomigaeru
Yomigaeru

I've heard of uDraw, but only in reference to games featuring Spongebob and Marvel Superhero Squad. Not two names that exactly appeal to core gamers on the PS3 and 360. The product would go better with a game like of Drawn to Life.

Ronnie_Rim
Ronnie_Rim

Did they actually think people would buy this?

wwlettsome
wwlettsome

Market research...put a bunch of people in a room and ask them question which will give you no relevant information on what people will actually buy.

DevilD2005
DevilD2005

THQ: Focus on good customer service, great games that go beyond the call of duty, and expanding franchises in such a way that we arent feeling exploited. Feel free to also try to come up with something original and revolutionary. Saints row, while critically loved, feels exploitive when we are told there will be dlc before the game even comes out. WWE 12 doesnt fix many problems of it predecesor, and there is no excuse for the bad servers. Voltron only had 4 levels. Rather than aproaching video games from a business standpoint (ei take an established series Red Faction, and adding generic bug like aliens on mars) and try aproaching from a pro gamer standpoint.

S001-PRIMAL
S001-PRIMAL

i think theyve been developing wii games for 2 long (no offence to wii owners)

Double_Wide
Double_Wide

[QUOTE]Despite uDraw's strong success on the Wii in fiscal 2011, and market research indicating strong demand for uDraw on Xbox 360 and PlayStation 3 [/QUOTE] Easy solution...FIRE YOUR R&D DEPARTMENT! They are obviously out of touch with what type of gamer owns which console and what each's demands are. A high school student could have told you the uDraw would have never gone over with the majority of PS3 and XBOX 360 owners and would have been right on the money.

pszone
pszone

Dont do any kids games no more. THQ got no much games for 212 line up so i guess they will be UFC 3 out , Next WWE game, saints row 4. Thq your going to lose half your earnings next year. Need to bring more games out in a year

bushisprez
bushisprez

THQ doesn't know what makes a game epic. Can UDraw an arrow to the knee?

X_Colbert_X
X_Colbert_X

Who exactly expressed "strong demand" for this product? Surely not the consumers.

dxdevilex0
dxdevilex0

Ubisoft is also making a Drawsome tablet like the Udraw IIRC.

cr8ive
cr8ive

"... and market research indicating strong demand for uDraw on Xbox 360 and PlayStation 3" This is the first time I read about the uDraw. Maybe THQ should've spent more in marketing campaign instead of marketing research... not that it would help...(I wouldn't get 1) @mjc0961: well.. actually we have 1 that defied the common sense and succeeded ... the plastic guitar... I happen to have one ..^^;;

Archontic
Archontic

THQ has some great games, and it would be a damn shame to see them go just because they made a few particularly awful decisions. I wish they'd stick to what they're good at.

RavageCobra
RavageCobra

I remember seeing the commercial for this two days ago. I knew it was going to crash and burn :D

Rocker6
Rocker6

uDraw? Never heard of it,seems pointless,also Im up-to-date with the gaming industry,so THQ really messed up with this...

hobotech64
hobotech64

I haven't even heard of this game. There's your problem right there.

HollowNinja
HollowNinja

You could always just get an actual drawing tablet instead. I don't see why people would buy this.

megakick
megakick

Udraw was suppose to save THQ? Invest more in Saints Row the 4th the 3rd is awesome fun.

Teddified42
Teddified42

@Flaming Fury - I totally agree. With tons of new games on the Ps3 and Xbox360, the very last thing that I want on my Christmas list is a shallow drawing mini-game.

Fergood
Fergood

This is the first time I've even ever heard of this game...and I'm pretty active with gaming websites and gaming magazines...

FlamingFury
FlamingFury

What were they expecting? Seriously? It's designed for kids, why would they get it on a HD console when they can get spongebob squigglepants for Wii? Seriously, a dumb as hell move.

dab0ne
dab0ne

I've never even heard of this thing coming to the PS3 or 360... maybe they needed a little more marketing?

Nodashi
Nodashi

@DevilD2005 those games suck.

They should have made CoH2 faster and also work on homeworld 3. Few projects, very well done and directed to a market that hungers for good releases (PC RTS).


Nodashi
Nodashi

@HollowNinja Same reason people buy consoles over PCs. Cheaper and just for games.