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30 laid off from uDraw team

Mon 12 Dec 2011 8:33am GMT / 3:33am EST / 12:33am PST
BusinessPublishingDevelopment

THQ cuts back on uDraw support following disappointing sales

THQ has made 30 people redundant following disappointing sales of its uDraw Game Tablet.

The layoffs were confirmed to Game Informer by a THQ spokesperson, and are limited to the company's Play THQ development team in Agoura Hills, California.

"Due to weaker than expected sales of the uDraw Game Tablet, we are taking a difficult but important step to reduce the number of employees that supported this brand," the spokesperson said.

"30 people will be leaving the company and business unit leader Martin Good will also be leaving to pursue new opportunities outside the company. This action will allow us to reduce costs, increase efficiency and increase the focus of our organisation."

THQ posted a loss of more than $92 million for the quarter ending September 30, and was relying on the strong performance of its holiday releases to strengthen its full year results.

The news that the uDraw had sold poorly emerged last week when the company reduced its third quarter sales forecast by 25 per cent.

However, industry analysts suggested that the reduction in revenue - amounting to around $130 million - could not have been caused by the uDraw alone.

"Management blamed poor sales of uDraw on the Xbox 360 and PlayStation 3 for the miss," said Cowen & Company. "However, the $130 million revenue downside suggests that there was likely some incremental weakness elsewhere."

"At a roughly $50 for uDraw across all platforms, including the Wii, it would take a 2.6 million unit shortfall to account for the full revenue miss; THQ's planning implied less than 2.6 million units of total uDraw sell-in."

8 Comments

Terence Gage Freelance writer

1,288 120 0.1
"Due to weaker than expected sales of the uDraw Game Tablet"

But didn't analysts work out that uDraw on PS360 needed to sell in the region of 2.6 million copies for Thq's financials to make sense? Whoever expected it to shift these kind of numbers on those two consoles hasn't been paying attention to the market for the past five years.

Anyway, a shame for the development team paying for its publisher's mistakes. As usual, I guess.

Posted:2 years ago

#1

Francisco Javier QA Manager, Zed Group

28 21 0.8
It's THQ's HQ to blame for. Really, did they expected good results for uDraw on Xbox 360 or PS3? I thought they did understood the Wii marketshare and we now see that they didn't understood nothing.

Posted:2 years ago

#2

Wesley Williams Quality Assurance

133 72 0.5
If they're considered lowering the price for the Wii I'm sure they'd have sold many more, but porting to the 360 and PS3 was a stupid move.

Posted:2 years ago

#3

Harrison Smith Studying Games and Graphics Programming, Royal Melbourne Institute of Technology

75 4 0.1
I could not see it working for the PS3 or 360, Maybe PC as some Low range Digital tablet but other than that this was very much expected.

Posted:2 years ago

#4

Emily Rose Freelance Artist

82 36 0.4
It's somewhat telling that this is the first I've heard of anything called uDraw...

Posted:2 years ago

#5

Sam Maxted Journalist / Community / Support

155 65 0.4
It was the first I'd heard of it being available for the PS3 / 360.

Posted:2 years ago

#6

Dave Knudson Sr. Technology Manager, Electronic Arts

42 7 0.2
I remember seeing commercials/press for uDraw for the Wii last year. As Sam said, this is the first I've heard of it this year.

Posted:2 years ago

#7
This nothing but poor planning and failure of THG's management. They didn't do their homework.

Posted:2 years ago

#8

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