THQ discontinuing uDraw business

It's no secret that THQ has not been doing well. As part of its restructuring, the company had planned on shelving licensed kids games. In addition, it appears THQ is no longer producing its uDraw tablet.

The original uDraw tablet found success on the Wii, but plans to expand the platform to PS3 and Xbox 360 languished. "Sales of the uDraw GameTablet and related software, and other titles in the kids, family and casual category were far weaker than anticipated, substantially reducing our financial results for the quarter," THQ president Brian Farrell admitted in the company's latest financial report.

"We were looking at Udraw as a bridge to the digital future, but the bridge to the digital future turned out to be a plank that we walked off," Farrell amusingly commented.

"Lower uDraw revenue, high inventory reserves, price protection, and concessions at retail had an approximate $33.0 million impact on the company's operating income in the quarter," the report explains.

With uDraw tablets sitting on store shelves collecting dust, it makes sense why THQ would want to discontinue production. "THQ has no future commitments or plans to manufacture uDraw hardware," the company told investors. "THQ's strategy is to focus on its premium core and fighting franchises and to expand its digital revenues."