Yesterday during THQ's conference call to discuss earning with investors and the media, the company admitted that they were wrong about a number of things.
"On our last call we told you we anticipated that our third quarter would be the largest in our company's history, " said President and CEO Brian Farrell at the start of the call. "Unfortunately, we were wrong."
"The disappointing performance of uDraw this holiday, and continued weakness in the kid's license category overshadowed the very successful releases of Saints Row The Third and WWE 12," he continued. "uDraw hardware and software sales were approximately $100 million below our plan, and our other casual titles were approximately $25 million below plan, substantially reducing our revenue and profits for the quarter. We were confident that uDraw would resonate again this holiday, given last year's robust sell-through and 2 independent studies indicating we were addressing a sizable market on the HD platforms. Our confidence was misplaced. What we had viewed to be a product that would generate revenues and profits while we continued to build our portfolio of core gaming franchises has instead created a catalyst for us to evaluate our business from top to bottom."
What we find odd is that THQ would continue to rely on Farrell after such a disastrous quarter that has caused the company some very serious problems. In any event, we will continue to follow the financial well-being of THQ until it either improves or becomes a victim of its most recent missteps.