THQ Cuts 30 Employees from Studio
Last week, THQ released a statement that they would have to lower it’s third-quarter projections, and noted the uDraw tablet’s poor sales were to partly blame.
Late last week, about 30 employees from the THQ Play studio were notified that their services were no longer needed due to budget cuts. THQ Play, of Agoura Hills, CA, was division that developed the sluggish uDraw.
“Due to weaker than expected sales of the uDraw Game Tablet, we are taking a difficult but important step to reduce the number of employees that supported this brand. 30 people will be leaving the company and business unit leader Martin Good will also be leaving to pursue new opportunities outside the company. This action will allow us to reduce costs, increase efficiency and increase the focus of our organization,” THQ told Game Informer.
When uDraw, a program for all three systems that lets user draw on a TV with a tablet, was first shipped in the early part of this current holiday season, the suggested retail price was $69.99, or about $10 more than most newly released titles. A few weeks later, the company was forced to cut the price by $20, in hopes to push more units out of stores.
The cuts are obviously a knee-jerk move on THQ’s part, so its shareholders can rest easy at night. However, this should clearly tell you that uDraw is still not selling, even up to low exceptions, and the company is moving forward as if they expect sales to remain slow throughout the holiday season.