After revealing their latest Q3 sales outlook only a week ago, THQ have laid off thirty people from the Play THQ division. Play THQ previously handled games for the uDraw tablet, which THQ blames for the poor Q3 results of this fiscal year. In a statement to Game Informer, a THQ spokesperson confirmed the the downsizing:
Due to weaker than expected sales of the uDraw Game Tablet, we are taking a difficult but important step to reduce the number of employees that supported this brand. 30 people will be leaving the company and business unit leader Martin Good will also be leaving to pursue new opportunities outside the company. This action will allow us to reduce costs, increase efficiency and increase the focus of our organization.
Analysis: Oh, dear. I know I didn’t have high hopes for the uDraw in my last post on the subject, but didn’t the peripheral sell quite well on the Wii? I guess with the upcoming release of the WiiU, THQ isn’t really betting on the long term profitability of the uDraw tablet. And you know what? They’re absolutely right. The uDraw tablet has no future, which makes me wonder why THQ bothered to dedicate an entire division to it. They’re not as big as Nintendo, Sony, or Microsoft, or even other publishers like EA or Activision. What made them think that they can push a peripheral all by themselves? It was a bad idea all around even if it did manage to secure some good initial sales on the Wii.