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.