Investors suing THQ over the fail that is uDraw
Ah the uDraw, the tablet that would allow artists to see their drawings come to life on their TV screens. Surely there was a lot of demand within the gaming community for such a product. Actually, there wasn’t much (if any) demand for uDraw in the gamer demographic, or any other demographic for that matter. OK to be fair, it sold decently well for the Wii, but it’s sales on the Xbox 360 and PS3 tanked, making the device one of the biggest gaming product flops in recent.
Sales were so bad in fact that investors actually filed a class action lawsuit against THQ last month, because they believed the publisher mislead them about the consumer demand for the tablet. Now another group of pissed off investors has filed a class action suit of their own because they feel THQ, "misrepresented or failed to disclose" the fact that the uDraw’s sales on the PS3 and 360 were so low.
I can’t help but feel really bad for Jason Rubin right now. He’s essentially been given the keys to a company that seems to be falling apart before our eyes and on top of that, he has to deal with this ever-growing legal issue do to the mistakes made by the previous administration.
Hopefully he can sort this whole legal catastrophe out without the THQ taking too much of a financial hit and get this company back on its feet.
Well, this solved nothing. At least I learned somthing.
I had no idea they tried to put this out on 360 and PS3...
Well, I'm not 100% on all the facts. But from what you're saying that may be true. However, was what THQ said to their investors that the demand would be equal, or at the very least not that much lower, on the other platforms compared to the Wii? If that's so then they clearly lied. Only if something like that is so.
Yeah, but do you know that they didn't base sales off of the actual market demographic? The way i see it, the target demographics were familys and casual gamers, and that is why it sold better on the wii, due to common market demographics, but (sorry for the run-on scentence) since the wii was only 1/3 of the sales the product failed. So, the product did well with casual gamer demographic (target audience), there WAS a high demand for the product.
It could've done well enough, except for the fact that two games were released, they were poor quality, and the controls were unfinished. Meh, didn't really want it anyways.
Well Wii U too, butthurt.
I honestly never knew there was a 360 and PS3 version because EB games only sold the Wii version.... I just hope THQ does get out of this any way their new CEO is promising.
I can name you a whole lot of good games from THQ:
Dawn of War Space Marines Homefront Saints Row (better then GTA) Company of Heroes Age of Empires for the DS CONKER'S BAD FUR DAY! For Europe anyway... Legen... I mean Darksiders Destroy All Humans Quest 64 South Park (the one that's coming out) Supreme Commander (the first one)
Yes they do shit out a lot of movie/cartoon licence games but that's for little kids anyway.
Still, when investing you're putting your money on something you hope can turn a profit; and when the value of what you invest in drops, it's pretty much a wash. From my perspective, Investment is a lot like gambling. The main difference between the two is gambling is controlled by the casino you decide to wager your money at whereas the stock market and the economy are controlled by the consumer. Either way, the investor/gambler has no control over his money once it is put on the table.
I hope they win, THQ's turd to gem ratio is about 100:1. They are like the present day LJN cranking out ass at the speed of light. They have what, maybe 5 good games?
aww man, but it was gonna be good...
Not even close. Investing is not gambling. The investors are owed a certain deal of information and trust and if they feel they have been given false information (THQ telling them there is a great demand for this when in fact they could not know that) and also didn't tell them the product was not selling which they are required to do by law so that the investors have as much information as possible then of course you can sue. Its sometimes funny when on game sites I read stories about business and then gamers try to give their opinions on it. Its way worse on GT but some of the comments on screwattack are also quite ignorant.
Aww, poor THQ.
Wait this was actually on the 360 and ps3? it sounds stupid it say but I may have considered buying this if I knew that. I would have bet a months wages it was a Wii exclusive.
THQ is not to blame for thinking success on the Wii would translate to PS3 and 360. I think we are all allowed a moment of wishful thinking
THQ can't get a break can they?
As a testament to how bad this thing did, this is actually the very first time that I have ever heard of it. And I keep my ear to the ground for things like this. And yeah, if they actually thought there was a big demand for something like this and invested their money in it, then they deserve to be out whatever they put in.
Perhaps if investors were more familiar with the gaming community they could have foreseen its failure.
That's an extremely apt anaology.