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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hidannikI wrote something about Hatred here: http://gamepolitics.com/2014/10/20/super-podcast-action-committee-episode-11910/26/2014 - 4:17am
hidannikI just looked in the forums. Whoa. Is there anything there but spam?10/26/2014 - 4:16am
MechaCrashHey Neo, that bit with "he instigated it"? That is called victim blaming. Stop it.10/25/2014 - 11:05pm
KronoAnd a rebuttal to that article: https://medium.com/@cainejw/an-actual-statistical-analysis-of-gamergate-dfd809858f6810/25/2014 - 9:42pm
Technogeekhttp://www.newsweek.com/gamergate-about-media-ethics-or-harassing-women-harassment-data-show-27973610/25/2014 - 8:54pm
TechnogeekAnd speaking of harassment and Gamergate, Newsweek had a social media analytics company analyze the hashtag in the interest of finding out what the movement was really about. The results should surprise absolutely nobody at this point.10/25/2014 - 8:54pm
Neo_DrKefkaI was called a traitor for speaking out on harassment and I was put on a list for people on twitter to mass report me. Only GamerGate site that has come out of this that has been reputable would be TechRaptor. 2/210/25/2014 - 7:09pm
Neo_DrKefka@Neeneko The reason why I ended my support of #GamerGate was the fact KingofPol (The guy who was sent the knife) ended up saying crap about those with autism. At this point I confronted the community and some big wig writers on the #GamerGate side. 1/210/25/2014 - 7:08pm
NeenekoIt would also mean they have to confront that the sites already mostly cater to them and wiping that small percentage of otherness just does not justify new sites.10/25/2014 - 6:55pm
Neeneko@ quiknkold - problem is it has never been about freedom, it is about dominance, ownership, and priviliage. women and minorities should be the ones leaving and creating their own spaces, not them!10/25/2014 - 6:54pm
Neo_DrKefka@Mecha I hear you about KingofPol this is a guy who is using GamerGate to boost his career. Most of his streams are crap about him talking about him being drunk. What happened to him was wrong but it doesn't change the fact he has instigated much of this10/25/2014 - 5:40pm
Craig R.And I'll be perfectly happy in never seeing the phrase 'false flag' ever again, as it is one of the worst notions to ever come out of the camp of the tinfoil brigade that is already completely overused.10/25/2014 - 3:50pm
Craig R.Gone for a week and come back to find GG didn't go away at all. Dammit.10/25/2014 - 3:48pm
Matthew Wilsonif they were serious, they would go to youtube. most youtube game reviewers tend to revew games as product, and tend leave social issues out of it.10/25/2014 - 1:42pm
quiknkoldif the gamergaters were serious, they'd realize that Kotaku and Polygon arent the only games in town, and that with the freedom of the internet, they could create their own websites and achieve the goals they are trying to achieve without arguement.10/25/2014 - 1:35pm
james_fudgehe should have called the police.10/25/2014 - 1:20pm
TechnogeekAt least my statement still holds if it does turn out to be a false flag.10/25/2014 - 1:03pm
NeenekoThough I admit, since doxxing and false flag where heavily used tactics of the GG supporters, while they are not historical tactics used by detractors, I am skeptical how much it is really 'both sides' doing it in any real volume.10/25/2014 - 1:01pm
NeenekoOne thing that makes all of this messy is 'false flag' is a serious concern here. It does not help that the original GG instigators were also known for doing elaborate false flags to discredit feminism themselves.10/25/2014 - 12:59pm
MechaCrashThe guy who got the knife is the one who advocated doxxing, by the way, and was getting court documents about Zoe Quinn so he could publicly post them. It doesn't make what happened to him right, but he deserves no sympathy.10/25/2014 - 12:42pm
 

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