THQ Lowers Q3 Sales Predictions

THQTHQ recently released a revised outlook for the Q3 of the 2012 fiscal year ending December 31, 2011. In the document, the company has lowered its net sales forecast by 25% compared to earlier predictions of 510 to 550 million USD. The lower sales forecast was due to the poor performance of the uDraw tablet’s release on the PlayStation 3 and the Xbox 360.
According to Brian Farrel, President and CEO of THQ, “Despite uDraw’s strong success on the Wii in fiscal 2011 and market research indicating strong demand for uDraw on Xbox 360 and PlayStation 3, initial sales of our uDraw tablet and software on these high-definition platforms have been weaker than expected.”

Despite that, Farrel expects strong sales for Saints Row: The Third and WWE ’12 to ensure a successful year for THQ.

Analysis: When I first heard that the uDraw was selling poorly, I did a double take because, a while ago THQ, was boasting that the Wii peripheral was selling great. Then I realised they released a uDraw tablet for the PS3 and the 360 just last month.

Now, I know what you’re all thinking: why would THQ release a “casual” peripheral on the “hardcore” systems during a time when Skyrim, Modern Warfare 3, Uncharted 3, and Zelda were all battling in the marketplace? It’s not as crazy as it looks; Kinect did well for Microsoft with a lot of family friendly titles, so it’s not too implausible that a successful peripheral for the Wii can transition to the HD twins.

That being said, it was still definitely a long shot. I’m sure THQ were hoping for holiday sales to make the uDraw a success, but that just wasn’t on the cards with the 3DS and the Wii eating up holiday hardware sales.

Still, with the success of Warhammer 40k: Space Marine, Saints Row: The Third, WWE ’12, and other THQ titles, I think the company did well in a quarter dominated by giant game releases.

Mohamed Al Saadoon

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