THQ's uDraw Killing The Bottom Line

THQ sold a large amount of uDraw for Wii. For some reason, THQ thought this would mean huge demand for uDraw on PS3 and 360. As it turns out, that’s not the case at all.

The incorrect sales projection has caused THQ to lower their Q3 2012 expectation by 25%. Stock fell 35% in response.

Yikes. Good luck with that.

uWhat? I’ve never even heard of this… which might indicate that their market research was severely flawed.

Also, some analysts are saying that while uDraw on 360/PS3 is a indeed a bomb, the blunder does not account for the $130 million difference.


This is what they thought was going to make them millions?

Somebody’s doing some seriously creative accounting to hide an awful lot of petty cash spent on hookers and blow.

That looks kind of neat!

I’d buy that for a dollar.

Yeah, someone messed up thinking that would sell on the other consoles.

Though I’m a bit sad to see THQ in such dire straights, they have published some interesting titles and seem to take some actual risks.

Aside from the Kinect and Playstation’s Move, are console gamers on those systems used to buying weird new peripherals? Always seems like it’s just the Nintendo fans willing to jump on that stuff.

This is a strong contender for 2011’s stupidest business plans.

Hey, don’t forget Ubisoft’s knockoff, the Drawsome. Although that’s just a Wii thing.

So you draw something and it appears on the tv? Amazing.

The Wii Udraw was in demand last Christmas so I can see where they might have thought there would be demand on the PS3 and 360. But the main games are geared around Spongebob and Disney Princess, which aren’t exactly big chunks of the market on those other consoles. And to the degree to which the little kid market likes the 360, its related to the Kinect.

It doesn’t help that the new versions don’t seem to be very effectively promoted in the stores I’ve seen them in. They aren’t located with the rest of the games nor are they placed with the normal accessories. Instead Udraw gets put into the same side area where the other peripheral games are.

I have never heard of this thing. Also, this shows the danger of wandering from software to hardware.

I highly doubt that they lowered the estimate by 25 percent solely because of uDraw. Maybe Saints Row 3 and the latest WWE game aren’t selling as many units as they were expecting as well? I remember them gloating about the SR3 preorder numbers, but the game could still underperform nevertheless.

It always seemed as if they’re changing their business strategy every year.

The investor statement said the uDraw debacle is “primarily” the reason for the projection adjustment. Analysts dispute that actually being the primary reason, but the only official cause given is that.

Doug Creutz of Cowen & Co. – who downgraded THQ the day before the announcement, citing worries about uDraw – said in a note Thursday that the implied $130 million shortfall “suggests that there was likely some incremental weakness elsewhere.” Michael Pachter of Wedbush said a shortfall of that size would either account for the entire 2.3 million uDraw units he had modeled for the quarter, “or that there is a bigger as yet undisclosed problem.”


It wouldn’t surprise me to see other costs stuffed into that number.

I question your math skillz.

So you should.

So how soon till I can buy one for $9.99?