Play THQ is the team behind the uDraw GameTablet (pictured above). The system was viewed as an innovative addition to the Wii game console that could bring out the artistic side of younger players. But sales during the season of huge blockbusters were weak.
VentureBeat first heard of the layoffs on Twitter and contacted THQ to confirm the story. In a statement, THQ said that lower-than-expected sales of the device have led the company to take the difficult, but important, step of reducing the number of employees that support the brand. The company adds this will allow them to reduce costs, increase efficiency, and increase the focus of the organization.
“WWE ’12 and Saints Row the Third are two of the top games this holiday season and we also have another huge hit coming up in February with the launch of UFC 3,” THQ said. “We want to make sure that we are focused on maximizing the sales and profitability of these titles as well as the broader pipeline of titles that matter most to our future.”
Earlier this week, THQ updated its outlook for its fiscal 2012 third quarter, which ends on December 31. Due to uDraw’s weak sales, the company says it now expects to report net sales for the third quarter approximately 25 percent below its previously announced guidance of $510 million to $550 million.
THQ expects to announce fiscal 2012 third quarter results in early February 2012 and will provide an update to its fiscal 2012 fourth quarter and full year guidance at that time.