As part of THQ’s restructuring and layoffs, the company also reported that they’re no longer producing uDraw hardware. The bad news just continues to pile up for THQ.
Read on for more details about THQ’s financial woes.
According to THQ’s Fiscal 2012 Third Quarter Results, “earnings from successful games Saints Row: The Third and WWE ’12 were offset by poor results for uDraw hardware and software. Lower uDraw revenue, high inventory reserves” and other factors all had a multi-million dollar impact on the company’s operating income for the quarter. New President and CEO Brian Farrell said, “Sales of the uDraw GameTablet and related software, and other titles in the kids, family and casual category were far weaker than anticipated, substantially reducing our financial results for the quarter.”
It might not all be gloom and doom though; THQ’s core IPs did well in the third quarter. Saints Row: The Third shipped 3.6 million units, and WWE ’12 shipped more than two million units. Maybe with the company’s realignment away from kids’ games, they’ll be able to capitalize more on their more successful franchises. Hopefully this isn’t all too little, too late.