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uDraw failure prompts law firm to investigate THQ
uDraw failure prompts law firm to investigate THQ
June 13, 2012 | By Tom Curtis

June 13, 2012 | By Tom Curtis
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    11 comments
More: Console/PC, Business/Marketing



THQ's been in dire straits for quite some time, but that situation got a bit worse today, as a Georgia law firm has announced that it is investigating the company over claims it made about its failed line of uDraw peripherals.

Specifically, the law firm Holzer Holzer & Fistel, LLC seeks to determine whether THQ failed to disclose information in a timely manner about the decreased demand for uDraw on the Xbox 360 and PlayStation 3.

According to Holzer Holzer & Fistel, THQ may have withheld the fact that demand fell below internal expectations in part because of the differences between players on the Wii and those on the Xbox 360 and PlayStation 3.

If the company did indeed hold back this information, or if it made other "false and misleading" statements, the company may have violated federal securities laws.

Holzer Holzer & Fistel also said THQ previously pitched the uDraw tablet as a source for potential revenue growth, and when the company discontinued the peripheral in February, it dealt a significant blow to many if its investors.

As of this writing, neither THQ nor Holzer Holzer & Fistel have outlined the potential ramifications of this investigation, but Gamasutra has reached out to both parties for further comment.


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Comments


Merc Hoffner
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Derp?

Critics (and publishers) often lay it on heavy that core experiences don't sell on Nintendo platforms. Is this direct evidence that non-core experiences don't sell on 360/PS3? and that while third parties espouse the difficulties on Wii, they hide difficulties on HD?

brandon sheffield
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not really. kinect is a fine counter-example, ditto the long runs of rock band and guitar hero.

Joe Zachery
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Once Guitar Hero became a Wii Sku it actually sold better on the Wii than the other systems. Then you add all the so called casual games. Their Kinect counterparts have not performed any where close to their Wii versions. Even though Dance Central could be consider a better product compared to Just Dance. Just Dance is still the main brand every one buys. Finally besides the UDraw issue they also took the DeBlob franchise, and misjudged the audience. The first game did extremely well as a Wii Exclusive and being a new IP. DeBlob 2 was a multiplatform game, and was a complete failure. So if there is a myth that the Wii can't sell hardcore games, then the PS3/360 can't sell casual games. Unless we all want to admit that the myth is journalism propaganda. Which I know no one wants to do that.

Merc Hoffner
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You know what? I apologize. I was being a bit facetious. The truth is the right product for the right audience can sell regardless of genre - demographics overlap afterall. Perhaps the uDraw simply wasn't the right product for core systems and as you rightly pointed out, Kinect connected better (mouthful). But similarly the right core game can and has sold on Wii. The point I'd like to make is that the generalizations in the core media are deep-seated, unconstructive, usually inaccurate and in my view often biased against Nintendo, which makes some sense. But then, I'm biased. It's the measurement problem all over again.

David Holmin
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"Their Kinect counterparts have not performed any where close to their Wii versions."

Kinect as a game controller is a failed experiment, in my humble opinion. It's latency ridden and has no buttons. Hell, they mostly use it for voice recognition now, something that could've been done with the headset. Comparing Wii to Move would be better, I think.

Michael Rooney
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@"Kinect as a game controller is a failed experiment, in my humble opinion. It's latency ridden"

The latency isn't that bad. If implemented correctly it's <5ms.

http://research.microsoft.com/pubs/145347/BodyPartRecognition.pdf

Evan Combs
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I'm not quite sure what exactly is wrong with what they did even if the accusations are true?

Duong Nguyen
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Public companies have to disclose matters pertaining to their business in a timely manner, ie they can't hide the fact that sales were slumping until the next quarter where it's more "convenient" for them. Seems like THQ can't catch a break.

Marcus Miller
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I'd like to get my money back for buying that darn camera for the 360. Anyone remember Totem Ball?? You can't even play that lousy game with Kinects.

David Phan
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I would love to see a video of the meeting where they (THQ execs & marketing) got pumped-up about shipping uDraw for the 360 & PS3 and made the call to go forward with it. It'd be worthy of a Dave Chappelle skit imo.

Geoff Yates
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LOL I suspect that may have been the case to. Dilbert would have a ball.


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