It is starting to be that time of the year when companies are either bolstering or lowering their earning forecasts of the fiscal year and it seems that THQ is actually lowering their forecast despite having two large titles released in the holiday season. It appears this is due to the fact that the multiplatform uDraw tablet has sold quite badly.
To be more specific, THQ CEO Brian Farrell explained the situation, saying that “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.”
As such the company is now lowering its aim of $510-$550 million by “approximately 25 percent,” which is a large hit for the company. Still, Farrell had good news for investors saying that “WWE ’12 and Saints Row: The Third are expected to perform at or better than the levels we discussed on our fiscal 2012 second quarter earnings call.” Least there is that.
