THQ slashes Q3 sales expectations by 25%

Publisher blames weak sales of uDraw gaming tablet

Saints Row publisher THQ has slashed its expected third quarter sales expectations by 25 per cent.

Blaming weak sales of its uDraw Game Tablet for Xbox 360 and PlayStation 3, the company said it anticipates sales of between $510 million and $550 million.

"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, initial sales of our uDraw tablet and software on these high-definition platforms have been weaker than expected," offered Brian Farrell, THQ 's CEO.

"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. As we continue to move through the third quarter, we are focused on driving sales of our key holiday titles and maximising profitability."

An update on the fourth quarter is expected in February when THQ reveals Q3 sales and revenues.

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Latest comments (6)

Alex Byrom Studying Multiplayer Online games design, Staffordshire University6 years ago
The reason people aren't buying it is because there's not enough software for it, it would be a bargain if it had pc compatibility, i suppose this is a problem when a peripheral isn't developed in house, i.e Microsoft, PlayStation and Nintendo
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Darren Stewart Videogame investor 6 years ago
It seems like THQ had a totally unrealistic expectation for uDraw. If you work through the numbers (which somebody has done on this thread here ) then it equates to a shortfall of 1.5m units of uDraw plus 1.5m units of software. They said they forecast 2.6m units of uDraw in the first place so they were massively short of an unrealistic forecast.

I haven't worked through the cash implications yet but this pretty much wipes out their cash surplus for the full year so what that means for their debt financing is unclear.

A big ouch for THQ I'm afraid. - investing in the video game industry.

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I am not sure if THQ have realistic expectations of what saints row and wwe projections may add to the total Q2 projections. Hypothetically, lets say sales are not as stellar, is there enough wriggle room?
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Show all comments (6)
Franck Sauer Creative / Tech Art Director, Fresh3d6 years ago
From why I can read in forums, uDraw has got very low quality feeling and the stylus is lacking precision. Not to mention the wire that makes it look like a tablet from the eighties. Not very attractive in this era of multitouch amoled screens. I guess even kids won't find it cool enough.
About pc compatibility, anyone a little serious about drawing would get a small wacom tablet anyways.
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Andrew Goodchild Studying development, Train2Game6 years ago
A few factors that could have affected sales are that:
a) Everyone now knows about Wii U, those who are interested may wait for that.
b) What may seem like a gimmicky product is coming out in a ridiculously strong AAA launch window.
c) Everyone seems to have decided that targeted internet advertising can replace TV advertising, then wonders why those advertising on TV sell better. This may be speculation on my part, interested to see how Spyro does as it is very visible on TV.
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Wayne Gibson UK Marketing Manager for 6 years ago
It seems like they have been trying to punch well above their weightclass for a while now.
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