The Failure of THQ’s UDraw HD Detailed

If you are wondering just how bad uDraw's sales hurt the company, then you need look no further than EA's results released today. During a conference call today to discuss its latest results, CFO Paul Pucino revealed that sales of the PlayStation 3 and Xbox 360 versions of THQ's uDraw tablet were $100 million below the publisher's expectations. He also said that 1.4 million units of the peripheral are sitting in warehouses collecting dust.

"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," said Pucino. "If you think about an average price of about $56 or so, that accounted for a shortfall of about $80 million."

"Then the million or so units that we did sell-in we had to sell at a lower price. That, coupled with software sales that are associated with uDraw being lower as well, totals about $100 million," he continued. "From a contribution margin perspective, we would have doubled the profitability in the quarter were it not for uDraw. So it was something in excess of $30 million in operating loss in the quarter as a result of uDraw."

THQ announced a loss of $55.9 million for the quarter. The division responsible for the device, Play THQ, was gutted in December. The company announced today that it plans to cut 240 more employees during the year.

Source: Eurogamer

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  1. 0
    hellfire7885 says:

    I use a similar device to game sometimes on my PC.

    If you ask me the problem boils down to software. If you make something interesting to play on it, it might do well.

  2. 0
    Neo_DrKefka says:

    You know those teaching laptop toys that idiot mothers thinks are so cool and how much there kid would like? This is not to far away from that. Anyone who bought this for their kids really doesn't know much about what kids or gamers like….

    I think they were marketing to the average Soccer Mom, Mom on Alimony living on Child Support, or Cougar.

  3. 0
    E. Zachary Knight says:

    They were probably thinking "Hey. That Mario Paint game on the SNES was awesome. With today's capabilities, we should be able to make an even more awesome game."

    I think the concept was pretty solid, it was just the implementation that was poor. A whole lot could have been done and it is a precursor to what can be possible with the WiiU if someone wanted to put the time and effort into making a quality game for it.

    E. Zachary Knight
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  4. 0
    ChrowX says:

    I want to know what market research team told THQ that a tablet-driven gaming experience would sell that much, especially when games marketed to younger kids who barely have the coordination to use the silly thing.

    I mean, the pitch is, "Hey, it's a digital tablet that lets you draw on your home console!.. and then not be able to upload it to any of the dozens art sharing sites out there.. and it also lacks the ability to create anything of quality or significantly edit it."

    I just don't know what they were thinking to begin with.

  5. 0
    GrimCW says:

    there were PS3 and 360 versions apparently.. according to the article anyways..

    though interestingly enough the pic is the Wii one :)

    tbh i never saw those versions either..

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