Atari Has Just Filed For Bankruptcy
It’s just the latest chapter in the company’s very messy legacy.
Polygon reports that US branch of Atari has just filed for Chapter 11.
According the source of the story, the LA Times, Atari Inc and three other subsidiaries have all filed for Chapter 11 reorganization as an attempt to break way from the French parent company, Atari SA.
The end goal is so that it can be bought privately and grow as a business that can focus on digital and mobile platforms, according to an unnamed source.
So going by that possibility alone, one might assume that perhaps the parent company is either not making enough strives towards said goals or are simply ignoring them.
Which really isn't true; as Polygon also notes, last year was a busy one for Atari. In addition to creating updated version of Pong, for iOS, it also entered a partnership with Zynga and laid out a fairly retailed mobile road map.
The report also notes the financial difficulties that the parent company has been going through, for seemingly forever. Revenue and profits from the past two years have been disappointing to put it mildly, so perhaps the folks are Atari Inc are simply frustrated and desperate for some much needed change.
Despite the fact that the name Atari is synonymous with video games, the same holds true with financial difficulties. For those who aren't up on their Atari history, Atari SA was originally Infogrames Entertainment SA, which purchased GT Interactive in 1999. The latter was renamed Infogrames Interactive.
Infogrames Entertainment SA then purchased Hasbro Interactive and various Atari related properties a few years later; Infogrames Entertainment SA became Atari SA and Infogrames Entertainment became Atari Inc.
Point being, the Atari(s) that we know today bare very little resemblance to the company that everyone grew up with. So anyone worries that this latest legal action will dilute the Atari legacy should know that it's long been a legal mess for years now.