THQ lays off 30 staff after poor uDraw sales
Publisher THQ has laid off 30 staff including an executive vice president from its uDraw team after disappointing sales of the tablet peripheral.
Speaking to Game Informer, THQ confirmed the layoffs following the reduction last week of its third-quarter revenue forecasts by 25 per cent because sales of uDraw on Xbox 360 and PS3 had been "weaker than expected."
"We are taking a difficult but important step to reduce the number of employees that supported [uDraw]," a spokesperson said. "Thirty 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 organisation."
Released for Wii last year, uDraw was one of few positives to be found on THQ's balance sheet. In May, when the publisher announced losses of $136 million, it revealed it had shipped 1.7 million tablets to retailers, and would seek to build on that success by releasing uDraw for Xbox 360 and PS3.