advertisement

Atari running out of quarters?

By Brendan Sinclair, GameSpotPosted Nov 7, 2007 12:04 pm PT

Publisher expresses "substantial doubt" about its own future in belated earnings filing; revenues shrink to $10M as losses rise to $12M.

The Atari name has been tied to periods of tremendous success and financial failure. It is currently weathering a rocky couple of years that has seen the Infogrames subsidiary cease all internal development of games, sell off valuable studios and properties, institute wide-ranging layoffs, repeatedly flirt with delisting from the Nasdaq stock exchange, fight to retain the lucrative Dragon Ball Z license, and unexpectedly overhaul its board of directors, much to the chagrin of some investors.

Now the publisher isn't sure if this is a slide from which it can recover. Last month Atari announced a change to an existing line of credit. However, in its just-filed report for the first quarter of its fiscal year 2008, Atari said the maximum amount it can borrow through the agreement won't even provide the funding it needs to make it through the current holiday season. Atari management is looking for additional financing, though by the company's own account, there's no guarantee it will materialize.

"The uncertainty caused by these above conditions raises substantial doubt about our ability to continue as a going concern," Atari said in its filing. The publisher is considering another round of layoffs and suspended development on multiple games to save some money.

"The above actions may or may not prove to be consistent with our long-term strategic objectives, which have been shifted in the last fiscal year, as we have discontinued our internal development activities and increased our focus on online and casual gaming, among other things," the filing reads. "We cannot guarantee the completion of these actions or that such actions will generate sufficient resources to fully address the uncertainties of our financial position."

The filing was actually the publisher's belated quarterly report for the three months ended June 30, 2007. For the quarter, Atari brought in $10.42 million in revenues, down from $19.47 million for the same period the year before. It also saw its net losses spike to $11.94 million from the prior year's $7.30 million shortfall. At the end of the quarter, the company's total assets measured $34.99 million.

291 Comments

  • Snaptrap

    Posted Nov 17, 2007 1:10 pm PT

    The real Atari is dead. Infogrames took on all Atari properties and changed their name to Atari. The Atari name in itself is just a curse brought about from the Tramiel family who dragged the name through the dirt with failures such as the Jaguar and trash games such as ET. If I was Infogrames, I'd dump the name.

  • tiltus

    Posted Nov 12, 2007 1:44 am PT

    If the die, then their assets (and licenses) will most likely be liquidated and sold off individually, unless there is a takeover or the like...

  • greater_bird

    Posted Nov 12, 2007 12:29 am PT

    If Atari dies, what happens to their game series? Do they die with it, or get sold to others?

  • SpazH3d

    Posted Nov 11, 2007 1:12 pm PT

    Finally! Oh, did i say that out loud?

  • spunkymulvagh

    Posted Nov 9, 2007 2:30 pm PT

    That just seems sad to me..

  • enoslives7

    Posted Nov 9, 2007 10:57 am PT

    bring out the Jaguar 360 and Lynx-Lite, and Atari would totally rule again......

  • qiwihead

    Posted Nov 9, 2007 9:10 am PT

    As many in my generation, I began gaming with the Atari 2600. But that was 30 years ago, and Atari hasn't really been a power player in at least 20 years. Today's Atari has nothing whatsoever to do with the original Atari, so their going bankrupt really has no impact on the gaming industry. Does anyone really care about Atari anymore, aside from having their old logo on hipster T-shirts?

  • wanderingblade

    Posted Nov 9, 2007 6:17 am PT

    doesnt bother me

  • Devvy01

    Posted Nov 9, 2007 6:04 am PT

    so where did all the profits go? CEO's pocket?

  • spelledarn

    Posted Nov 9, 2007 4:11 am PT

    Neverwinter Nights 2 was worse than Baldur's Gate 2 in every respect except the graphics, but beating a 6 year old game really isn't saying much. Atari has been too cautious to innovate, and this is the result.

  • SorrowsFlame

    Posted Nov 8, 2007 7:49 pm PT

    With how badly they screwed up Neverwinter Nights 2, they deserve this. -.-

  • dorohala

    Posted Nov 8, 2007 5:46 pm PT

    This what happens in big business, Big big companys like that make money but at the end of the day they become bankrupt. Thats how life is people!!!

  • hwatney

    Posted Nov 8, 2007 3:48 pm PT

    Eventually the Atari name (regardless of who owns it at the time) will die the thousand deaths it deserves for ET the Extraterrestrial and the 2600 version of Pac-Man, the world's worst game port ever. Then this will all end and Atari will be allowed to live again as it once was.

  • gordanfreeman53

    Posted Nov 8, 2007 3:35 pm PT

    I kinda feel sorry for Atari but this happens in the world of business.

  • DbleBassDrummer

    Posted Nov 8, 2007 1:43 pm PT

    It's all ET's fault.

  • JohnnyNeat

    Posted Nov 8, 2007 1:27 pm PT

    All I can say is I feel bad, but they should have hired up and coming creators. Living off a name and old fame runs out.

  • smbius

    Posted Nov 8, 2007 1:23 pm PT

    It's sad really. IgnorantGames has done in Atari so bad that no one really cares about that brand anymore.

  • Thrall-3-20

    Posted Nov 8, 2007 12:47 pm PT

    NOOOO not the DBZ games!

  • Diraan

    Posted Nov 8, 2007 12:34 pm PT

    I agree with Nirvana0511, if Atari goes under, I hope one of the bigger companies will pick up the name. It would be a shame if Atari was to exit the gaming world

  • Nirvana0511

    Posted Nov 8, 2007 12:08 pm PT

    Either Microsoft, Nintendo, or Sony may want to take a chance on either reviving the company or just taking the name as a means to releasing the games online and/or re-adapting any franchises that are still Worth selling. Like for instance : Paperboy, The Star Wars Arcade Game(s), Tank/Combat Series, 720 (The Skateboarding game), Dragonball Z games, The Alone In The Dark Franchise, Rampart, etc.

    Imagine a new graphically significant version of Rampart on the PS3/360 or a New Version of Paperboy for the Wii where you throw the Papers with the Wiimote?

    That would be pretty sweet.

The Witcher Quick Links

Summary | Reviews | News | Previews & Features | Images | Videos | Downloads | Answers | Hints & Cheats | Forum | Check Prices

Check Prices: $14.95 – 29.99

GameStop $29.99 SHOP ›
eBay $14.95 SHOP ›
advertisement
The Witcher Boxshot Enlarge the boxshot
The Witcher

Game Stats

Full Game Details »Close

Games you may like…

Users who looked at content for this game also looked at these games.

See More Similar Games
advertisement