THQ Opens Up On uDraw Fiasco
It’s already been reported that THQ is in a rough place right now but aside from some of its franchises underselling, you might be asking what’s the big catalyst and the answer is – uDraw.
To clarify, THQ first released uDraw on the Wii in November 2010 and it was a resounding success. THQ’s next move was to release the thing on the PS3 and Xbox 360s and to try and replicate the uDraw’s Wii success – never mind that the Wii caters to a whole other demographic compared to the two.
To make a long story short, the thing bombed and it bombed big time. If you’re wondering just how big, we have the answer.
During THQ’s investor Q&A, CFO Paul Pucino revealed that uDraw for the PS3 and Xbox 360 performed about $100 million below the publisher’s expectations. Not only that, but the THQ has around 1.4 million units of the thing in its inventory collecting dust.
Pucino calculated the $100 million based on this:
Where that $100m comes from is we have about 1.4 million units still in inventory that we haven’t sold that we planned on selling. If you think about an average price of about $56 or so, that accounted for a shortfall of about $80 million
Yep, the company placed its bet on an inferior iPad wannabe and lost. Not surprisingly, THQ has no plans to continue further with its uDraw idea.
Are you one of the unfortunate who bought the uDraw? What are your thoughts regarding it?