Atari Files For Bankruptcy In The US
LA times, Atari Inc. and three of its subsidiaries have filed for Chapter 11 reorganization in U.S. Bankruptcy Court in order to "to break free from their debt-laden French parent." The company's leaders hope to break the American side of the business free and hope to find a buyer to take the company private. Since the early 2000s, Atari have been associated with Atari S. A. (formerly Infogrames) and has been mired with financial woes. In the last two years alone revenue has dropped 43% and 34% respectively. Efforts to try and reenergise the company have been unsuccessful, mainly because they are an American business listed on the French stock market. Not an ideal situation. So, is it doom and gloom for Atari? Well, not just yet. However, they are still making money, $16 million in the past two years thanks to their CEO, Jim Wilson. The New York based executive has managed to slightly turn the company around by developing games for smartphone and the web based on their classic franchises and by licencing the Atari name and logo for various pieces of 'retro' merchandise, a business which makes up 17% of their profits. Surely this bankruptcy filing should be just the next step in the plan to turn Atari back into a thriving business. Atari is, of course, most famous for creating arcade classics such as Pong and Asteroids and they are currently working on a new version of Pong with Zynga and a 'greatest hits' collection from its back catalogue. So, fear not. One of oldest companies in video games is still going, although not as strongly has it would like. What do you make of the news? Let us know in the comments section below.