Monday, January 21, 2013

Atari files for Bankruptcy

The once great home and arcade gaming powerhouse Atari has filed for bankruptcy protection in the US. By filing for bankruptcy Atari will be protected from Infogrames, Atari`s current French owner to which they owe a substantial amount of money.


LAtimes reports:


"Chief Executive Jim Wilson has been with Atari Inc. since 2008, and in 2010 became CEO of the French parent. The New York-based executive has attempted to rebuild the company, which has just 40 employees in the U.S., by developing games for smartphones and the Web based on well-known properties -- among them a successful "greatest hits" compilation of arcade titles and an updated version of "Pong." He has also licensed the Atari logo for consumer products, a business that provides about 17% of the company's revenue.

There is evidence that the U.S. operation, which after the sale of other assets now makes up the bulk of Atari S.A.'s business, has been improving. The corporate parent has been profitable for the last two fiscal years, save for the effect of a money-losing French subsidiary, Eden Games, that has been up for sale. Before that, neither Atari S.A. nor Infogrames had been profitable for about a decade."

more here

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