Atari US Files Bankruptcy - News
by William D'Angelo , posted on 21 January 2013 / 4,056 Views
Atari US has filed Chapter 11 Bankruptcy, according to the LA Times. The move was made in an effort to become independent from its French parent company, Atari S.A. Atari US hopes to find a buyer in the next few months and plan on focusing on digital and mobile platforms.
Profits have been shrinking the last couple of years. $11 million and $4 million for the last two fiscal years. Revenue has taken the biggest hit dropping 43 percent in 2011 and 34 percent in 2012.
Atari US has seen stagnant growth due to its reliance on BlueBay Asset Management for cash. A $28 million credit lapsed on December 31. Atari has not had the resources to release its games that are currently in development. If the Chapter 11 is successful Atari US could have very little or even no debt to BlueBay.
It is not known who may be interested in purchasing Atari US once the Chapter 11 has been successful.
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Wonder how this will effect their online portions of games. Specifically TDU2.
So another company is biting the dust. I guess this is a reorganization as oppose to a correction, in the industry. It good when there are disruptive influences in a market though it is getting a little out of hand. The Publishers really need to rework the market's pricing schemes.
Plus this is another proof that going mobile doesn't help, in most cases can kill you. Atari had a really big push for iOS recently and the F2P model with micro-transactions doesn't garentee that you will get your money back even if you make a decent game.
I wonder who will buy Atari Inc, but what about Atari SA in France which is actually Infogrames??? this is SO confusing
Atari is Infogrames, they just changed their branding around the turn of the century. I remember it was the E3 where the Gamecube/Xbox was debuted that the announcement that Infogrames bought everything involving Atari from Time Warner who had the rights before.
Atari is still around? And they're an independent company? I thought they got bought out by Hasbro and later Infogrames back in the 90s?
Atari was Infogrames, Inc, after buying the name in 1999 from hasbro.
