It’s no secret that THQ has fallen on hard times, and recent figures regarding the company’s uDraw tablet give some insight as to why.
CFO Paul Pucino revealed that revenue for the device had been much, much lower than expected in a recent investor Q&A.
“Revenues were lower by about $100 million,” he admitted.
$100 million. One Hundred. Million. THQ has a whopping 1.4 million unsold units to thank for that.
“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.
“From a contribution margin perspective, we would have doubled the profitability in the quarter were it not for uDraw. So it was something in excess of $30 million in operating loss in the quarter as a result of uDraw.”
Well that’s quite the stunner, then. The tablet was successful when it launched on the Wii back in 2010, but clearly the HD release hasn’t measured up. THQ has, unsurprisingly, no plans to move forward with the brand.