"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," he said. "If it's sold out, I'm sure they will find a way to increase manufacturing capacity."

Pachter is wrong here.

They already increased expectations on their CC from 1M to 1.25-1.3M units for the fiscal year due to demand and manufacturing limits. THQ said that max supply is 1.25-1.3M units for Q3 and Q4.. they said half will be manufactured in Q3 half will be Q4 (apparently the second half is allocated for Europe). In other words around 650K sales is the max sales for Q3 from uDraw. These are from direct quotes from the CFO on a Wells Fargo Conference.. he said there's significant supply constraints from their manufacturing partners and they can't even manufacture any more in Q3.

So the irony here is even if it is crazy popular, they are unable to meet demand. CFO also said the hardware has 'software type margins'. So for the stock to move up 10% on strong demand on Amazon is due to ignorance of these details, or possibly some kind of hope that strong sales for these will continue well into 2011 and beyond.