Gaming
uDraw Game Tablet: Unsold total 1.4 million
Published Friday, Feb 3 2012, 09:59 GMT | By Liam Martin | 3 comments
Unsold units of the uDraw Game Tablet account for approximately $100 million in lost revenue, THQ has revealed.
More than 1.4 million uDraw Game Tablets remain unsold, which, combined with forced price reductions, accounts for the $100 million shortfall.
During a recent conference call with investors, THQ reported losses of more than $55 million (£35 million) for the three-month quarter ending December 31, 2011.
The performance in the kids, family and casual category was "far weaker than anticipated", with the uDraw Game Tablet contributing to $30 million (£19 million) in operating loss in the third quarter alone.
Explaining how the performance of uDraw had cost the company so much money, THQ CFO Paul Pucino said: "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.
"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."
THQ reportedly laid off 240 employees recently, with Farrell's salary cut in half prior to yesterday's quarterly investor meeting.
The uDraw Game Tablet was released in Europe for the Nintendo Wii last March. An Xbox 360 and PS3 version was released later that year.
> uDraw Game Tablet / 'Instant Artist' review
Watch the uDraw Save and Share trailer below:
More than 1.4 million uDraw Game Tablets remain unsold, which, combined with forced price reductions, accounts for the $100 million shortfall.
© THQ
During a recent conference call with investors, THQ reported losses of more than $55 million (£35 million) for the three-month quarter ending December 31, 2011.
The performance in the kids, family and casual category was "far weaker than anticipated", with the uDraw Game Tablet contributing to $30 million (£19 million) in operating loss in the third quarter alone.
Explaining how the performance of uDraw had cost the company so much money, THQ CFO Paul Pucino said: "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.
"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."
THQ reportedly laid off 240 employees recently, with Farrell's salary cut in half prior to yesterday's quarterly investor meeting.
The uDraw Game Tablet was released in Europe for the Nintendo Wii last March. An Xbox 360 and PS3 version was released later that year.
> uDraw Game Tablet / 'Instant Artist' review
Watch the uDraw Save and Share trailer below:
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