News: THQ's uDraw Looks To Be A Hit

THQ's Wii-exclusive graphics tablet makes a quick, big splash in the US as Michael Pachter predicts very long-tail sales...

THQ took a bit of a gamble when it revealed it's uDraw Gametablet on Wii. As a fairly substantial piece of technology, the company was obviously banking on beating the odds with a not inexpensive package, targeting a potentially niche audience, on the gaming-focussed Wii.

Yet early signs for the uDraw tablet, which comes bundled with the uDraw Studio software allowing users to express their artist side, seem to be positive. Despite only releasing in the US earlier this week, early demand for the tablet caused THQ's shares to jolt dramatically, upping by over 10% yesterday. The hardware/software package peaked at number 7 on Amazon's video game best-seller list.

And (in)famous industry analyst Michael Pachter is confident that uDraw is not merely a flash in the pan. In an email to The Street, Pachter anticipates healthy long-term sales for the accessory.

"I think the market is reacting to a long-awaited hit, and their timing in front of holiday is really good... The only thing that will hold uDraw back is supply, as the company said it intends to make only 1 million or so this fiscal year. If it's sold out, I'm sure they will find a way to increase manufacturing capacity."

A European release for the uDraw Gametablet is expected in early 2011.


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