THQ Predicts Lower Sales for Q3, Blames uDraw

December 8, 2011 -

THQ expected that bringing its popular Wii drawing peripheral, uDraw, to other platforms would be lucrative. Earlier this year they announced that the uDraw would be coming to the Xbox 360 and PS3. With the peripheral out and in stores, it looks like THQ isn't getting the kind of returns they expected. The company said yesterday that sales for the third quarter would be down around 25 percent and blames weak sales of the drawing peripheral for the Xbox 360 and the PlayStation 3.

But analysts firms such as Cowan & Company and Wedbush Morgan say that THQ's lower-than-expected sales for the third quarter probably have more to do with other weaknesses in the company's line-up. On Tuesday Cowan & Company downgraded the publisher, but said that the investment community is suggesting bigger problems:

"Our downgrade of THQ shares on Tuesday was motivated by precisely this issue, though the revenue downside was even worse than we had feared," wrote Cowan & Company. "Management blamed poor sales of uDraw on the Xbox 360 and PlayStation 3 for the miss. However, the $130 million revenue downside suggests that there was likely some incremental weakness elsewhere."

Wedbush Morgan's Michael Pachter said that THQ may not achieve its guidance for the full 2012 financial year, making it the fourth year out of the last five that the publisher has posted a loss.

"In our view, the company's remaining release schedule for the quarter apart from Saints Row: The Third and WWE '12 featured many games that failed to generate significant buzz at retail," said Pachter. "Therefore, we believe sales were lower-than expected for many titles in addition to uDraw, due in large part to a pattern of mediocre reviews and a very crowded release slate for the video game industry. Reorders were also likely below expectations as the company's release slate over the first half of the year was pretty thin apart from Warhammer 40,000 Space Marine."

Pachter suggested that THQ's cash balance could "become an issue" in the next financial year saying that its declining licensed and core properties and an unknown release schedule for next year, leaves him unconvinced that Fiscal Year 2013 will be profitable.

"If that is, indeed, the case, the company may face a cash crunch before mid-year 2012, unless it is able to generate solid profits early in its fiscal 2013," said Pachter.

Source: GI.biz


 
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E. Zachary KnightZippy, So you can't find even one?08/29/2014 - 1:04pm
ZippyDSMleeAndrew Eisen:Right because shes prefect and never exaggerates... *rolls eyes*08/29/2014 - 12:53pm
SleakerAnd honestly, nearly all of the games she references, or images she depicts I've always cringed at and wondered why they were included in games to begin with, from pinups through explicit sexual depictions or direct abuse. I think it's cheap storytelling.08/29/2014 - 12:35pm
Sleaker@AE - aren't most people fundamentally misunderstanding her at this point? haha.. On a related note I think a lot of the backlash is coming from males that think she is telling them their 'Generic Male Fantasy' is bad and wrong.08/29/2014 - 12:33pm
Andrew EisenAnd no, I don't think the female community would be upset over the performance of a case study in and of itself. Possibly the mostivations behind such a study, the methodology or conclusions but not the mere idea of a case study.08/29/2014 - 12:29pm
Andrew EisenAmusingly, these videos aren't saying you can't/shouldn't use tropes or that sexual representations are inherently problematic so those are very silly things to have a problem with and indicate a fundamental misunderstanding of the series.08/29/2014 - 12:29pm
SleakerDo you think the female community would get extremely angry over a male doing a case study on the negative impact of sex-novels and their unrealistic depiction of males and how widespread they are in american culture?08/29/2014 - 12:25pm
SleakerThe other thing that people might find problematic is that they see no problem with sexual representations of females (or males) in games. And realistically, why is there anything wrong with sexual representations in fiction?08/29/2014 - 12:24pm
SleakerTo even discuss or bring up these issues at a cultural level to begin with. Going straight for games to many probably feels like a huge overstepping given that it's interactive story in many cases, and when you're telling a story why can't you use tropes.08/29/2014 - 12:21pm
SleakerI think a large part of the controversy stems from the idea that games aren't culture setters, but culture reactors, and simply depict what is already in culture. So people don't care that games use tropes or are blind to them because we've failed ...08/29/2014 - 12:20pm
AvalongodBesides, what better way to make her point for her than to respond to her opinion by behaving like a misogynistic asshole. Sure, it may be a troll account, but that doesn't make it "ok"08/29/2014 - 12:19pm
AvalongodWhether Sarkeesian is "right" or "wrong" is not relevant, neither she nor any other woman should have to expect that her opinion will be met with death threats or even just sexist language.08/29/2014 - 12:18pm
Andrew EisenOh, may as well. Zip, I challenge you to cite three specific examples from the TvW videos (use direct quotes and time stamps) and explain how/why they ring hollow or are over exaggerated.08/29/2014 - 11:56am
Andrew EisenZip - Bullies on both sides? What both sides? And of course bullies are worse than people who aren't bullies.08/29/2014 - 11:23am
Neeneko(2) yes, male tropes also have problems and gender studies looks at those too. But this highlights a privilage problem, the idea that if male issues are not brought up too female issues should not be discussed.08/29/2014 - 10:42am
Neeneko@ZippyDSMlee - jumping back (1) one can acknowledge systemic problems without requiring every male be a Neanderthal.08/29/2014 - 10:42am
MaskedPixelanteI don't like the new 3DS, mostly because it means there's a good chance future 3DS games won't be compatible with the current models.08/29/2014 - 9:30am
ConsterI don't get why Amazon decided to buy this "Twitch" fellow, really. It took him ages to beat Pokemon.08/29/2014 - 8:31am
ZippyDSMleeIt goes without saying that we need to et rid of the bullies on both sides that are far worse than Sarkeesian or Quin will ever be.08/29/2014 - 8:24am
ZippyDSMleeI'm talking more about the genreal movement and how silly it is, as for Sarkeesian half of what she is says rings hollw while the other half tend to be over exsagerated.08/29/2014 - 8:22am
 

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