THQ lowers Q3 expectations by 25% due to weak uDraw sales on 360 and PS3

THQ has updated its outlook for Q3 2012 ending December 31 by 25%, due to lower than expected sales of its uDraw tablet for PS3 and Xbox 360.

The company now expects to report net sales of $510 million to $550 million.

"Despite uDraw's strong success on the Wii in fiscal 2011 and market research indicating strong demand for uDraw on Xbox 360 and PlayStation 3, initial sales of our uDraw tablet and software on these high-definition platforms have been weaker than expected," said Brian Farrell, THQ president and CEO.

"WWE 12 and Saints Row: The Third are expected to perform at or better than the levels we discussed on our fiscal 2012 second quarter earnings call. As we continue to move through the third quarter, we are focused on driving sales of our key holiday titles and maximizing profitability."

THQ expects to announce Q3 2012 results in early February 2012, and to provide an update to its Q4 and full year guidance at that time.