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 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.”