Atari's US Branch Files For Bankruptcy
Here's one that tugs at the heartstrings a little.
One of the pioneers of the industry has been struggling for a while and now, the US branch of Atari has filed for bankruptcy.
According to an LA Times report, the company that brought us trailblazing classics like Pong and Asteroids is floundering; its US arm has filed for Chapter 11 reorganization. Atari wants to break free from its French counterpart, Atari S.A., and "refocus the company to make digital and mobile titles." Atari's revenue dropped 34% in fiscal year 2012 and 43% in 2011; these days, the Atari logo (used with other products) makes up 17% of the company's overall revenue.
The other issue is that the US branch functions on "near total reliance" on London financial company BlueBay Asset Management, and that arrangement finished up on December 31. Hence, Atari doesn't have the requisite funds to release any of the games they currently have in the hopper. Well, all they're doing these days is trying to make little games for mobile devices (they teamed up with Zynga last year), so maybe it's just best to bow out gracefully.
It's kinda painful for veterans like me to see Atari relegated to such a low status. :( Hard to fathom, really.
1/21/2013 10:45:01 AM Ben Dutka