Losses down for Infogrames

Atari parent's figures pick up slightly, but sales are down.

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The audited first-half financial year results for Infogrames have been posted, with the company reporting that it is finally trimming its losses. As part of its attempts to streamline operations and save the company from bankruptcy, Infogrames has sold off a number of internal studios over the last six months, including Paradigm, Shiny, Reflections (and related Driver rights), and, most recently, Melbourne House.

The strategy seems to be slowly paying off. Infogrames has posted an operating loss of 33.4 million euros ($43.9 million) for the six months ending September 30, compared to a loss of 45.4 million euros ($59.8 million) over the same period last year.

However, the company's sales were down from 123 million euros ($162 million) for that time frame last year to 105.5 million euros ($138.9 million) this year. The majority of revenue came from Europe and Asia, accounting for 63.5 percent of the total, with the remainder from the US.

There was an improvement to Infogrames' gross margin of 7.6 points, at 41.9 percent of revenue, which totals 44.2 million euros ($58.2 million). This was due to, among other factors, improved distribution systems and the moderate success of the Xbox 360 racer Test Drive Unlimited, which had sold nearly 121,000 copies in the US as of October 31.

Infogrames subsidiary Atari Inc. reported its earnings at the beginning of November, announcing a wafer-thin profit for the July-September quarter. At just $311,000, it was still cause for celebration as it marked the company's first profitable quarter in several years. Infogrames shareholders have also recently approved a debt-restructuring plan for the company aimed at further improving its financial situation.

Discussion

31 comments
mr_killer_man
mr_killer_man

Well the delays for the PS2 version are not doing any good! I've already reserved a copy nearly forgot about it had I not read this! Only 1 or 2 test drive games I've played were good.

Cloud737
Cloud737

That`s really a shame. Infogrames used to produce such great games, but recently they`ve been lacking in that department. If they go bankrupt now, it would really be a shame.

Sagacious_Tien
Sagacious_Tien

Just focus on the quality titles now Infogrames. The gamers will purchase if the game is of interest.

KingofTrolls
KingofTrolls

Because they make crap games and they are a crap company.

wwonka666
wwonka666

If this was really the original Atari, I would be behind them. But most of their recent games have been garbage and part of the reason they were able to become profitable again is because they sold off all their development houses. I don't see a very bright future for Infogrames/Atari unless they can move about 900,000 more Test Drive Unlimiteds for 360 and PS3 when it is finally released for that system. BTW Test Drive is a good game so maybe if you really want to see them survive you will buy it when it is released for your console of choice.

Energenix
Energenix

Infogrames had their hand in Unreal Tournament, so I hope the company can bring itself back from the brink.

NonyoBizness
NonyoBizness

their profit probably came from test drive: unlimited........... a very highly underrated game... its awesome.

neoand12
neoand12

:lol: infogrames...the only game I know they made lately was DBZ, anyway they always suck

comthitnuong
comthitnuong

infogrames hanst really had anyting running for it....

lzorro
lzorro

DBZ for Wii if pretty good and I've played Test Drive and it's a good game too. Honestly I hope they have the worst of their days behind them.

GIF
GIF

If it keeps making solid decisions like Test Drive Unlimited, Infogrames will see itself out of the red.

minos30
minos30

debt-restructuring i don't think that'll do it...

Colsworl
Colsworl

Well, I hope they recover (infrogrames) I loved their Driver games.

runstalker
runstalker

Nice, at least 5 responses thus far from people who think this is the same Atari as the highly-successful early 80s american upstart. No matter how many times a person tries to clear it up, people just don't want to remember this is not the same Atari. "omgz, i hope teh Atari doesnt die! i liek there games from teh old days!" Sigh.

casshern
casshern

With all those studios gone what internaly developed games are going to be published by inforgrames/Atari?

Dace67
Dace67

Atari does still publish good games (UT2k4 and NWN2 come to mind) so I'm hoping they do better.

Slash_out
Slash_out

They are not making any good games anymore... No wonder they are in a difficult situation. Let's hope for a miracle, after all, the more devs are out there, the more games we will get.

LexLas
LexLas

All my best wishes go toward Atari, I hope it recovers.

Greydawg
Greydawg

I'll never forget Out Of This World. One of my all-time favorite games. I gotta thank Infogrames for that one, among others. Hope they can stay on top.

WillT12345
WillT12345

Who got driver, let me guess EA?

ocelot1994
ocelot1994

Sales are down who cares they will live

thebrazenone
thebrazenone

somebody go to the graveyard and kick some more dirt on this company

StolenVex
StolenVex

I can only see this as a good thing. Even though they're not the same old atari, and thats not necessarily what I want... they've got their minds set on doing well. Also, selling off all those licenses means we might see fresh ideas in old series. I'm still wondering where Driver will go with a different owner.