Disastrous third quarter financial results for Atari have cast serious doubts over the future of the legendary publishing brand.
Atari, the US division of Infogrames, revealed late last week that the firm’s all-important Q3 sales were down to $100.8 million from $156.4 million a year previously, while profits collapsed down to a net loss of $4.8 million, from a profit of $19.6 million in the previous year.
Whilst sales were slightly up in this (the Christmas) quarter, the firm is trailing a nine-month loss of $62.8 million compared with a nine-month profit of $14.8 million in the last three quarters of the previous financial year.
The beleaguered publisher’s credit line seems to have also run out, with its bank HSBC refusing to extend any more loans. What’s more, the firm’s CFO (Chief Financial Officer) Diane Baker has left the company to “pursue other opportunities”. Hmmmm.
Atari is looking into various last-ditch methods of raising some urgently needed cash – including the possible sale of it’s intellectual property (Driver anyone?), probable staff layoffs and the spectre of development studio closures.
Just to put the current situation into some kind of context, in 1996 the company’s share price was valued at just over $127 a share. The share price at close on Friday was $0.63.
Despite all of this, Infogrames’ bald-headed bossman Bruno Bonnell still steamed ahead regardless and announced a number of new products planned in for 2006, including a return to the timeless classic Battlezone on the PSP, a new Stuntman game for the Xbox 360 and a new Alone in the Dark title for the PC.
Atari, the US division of Infogrames, revealed late last week that the firm’s all-important Q3 sales were down to $100.8 million from $156.4 million a year previously, while profits collapsed down to a net loss of $4.8 million, from a profit of $19.6 million in the previous year.
Whilst sales were slightly up in this (the Christmas) quarter, the firm is trailing a nine-month loss of $62.8 million compared with a nine-month profit of $14.8 million in the last three quarters of the previous financial year.
The beleaguered publisher’s credit line seems to have also run out, with its bank HSBC refusing to extend any more loans. What’s more, the firm’s CFO (Chief Financial Officer) Diane Baker has left the company to “pursue other opportunities”. Hmmmm.
Atari is looking into various last-ditch methods of raising some urgently needed cash – including the possible sale of it’s intellectual property (Driver anyone?), probable staff layoffs and the spectre of development studio closures.
Just to put the current situation into some kind of context, in 1996 the company’s share price was valued at just over $127 a share. The share price at close on Friday was $0.63.
Despite all of this, Infogrames’ bald-headed bossman Bruno Bonnell still steamed ahead regardless and announced a number of new products planned in for 2006, including a return to the timeless classic Battlezone on the PSP, a new Stuntman game for the Xbox 360 and a new Alone in the Dark title for the PC.
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Comments
Joji 13 Feb 2006 12:45
1/6
What bad luck, to be bankrupt for a second time, under the Atari name.
I'm now worried for my friend who works for them.
I'm now worried for my friend who works for them.
BustyKrusty 13 Feb 2006 15:42
2/6
This is terrible news...come on people just go and buy MatrixPON everybody!
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ozfunghi 13 Feb 2006 21:15
3/6
Other than the name and logo, what does Atari have to do with Atari?
LUPOS 13 Feb 2006 21:28
4/6
BustyKrusty wrote:
This is terrible news...come on people just go and buy MatrixPON everybody!
I once met david perry without realizing it was him... had some guy at a kind of small venue (digital life non official pre party thing) demoing the new PON game and i didnt know it was him, just thought it was some game tester they brough out to show it off... silly me... and to think... EWJ was one of the games that really pushed me from ocasional gaming to obssesed levels (litteraly played through the entire game almost once a day for like a month straight)... felt like quite the twit... Mr. perry, if yor listening(which i doubt)... i'm a twit... you rule... best of luck... where every shiny lands.
_______
BustyKrusty 14 Feb 2006 01:39
5/6
Well, Mr PDU probably got his for free but thanks i'll gladly pay for it as generally, Atari, doesn't suck ass, and provides great fun and besides i'm looking forward to many of their games.
tg0006 15 Feb 2006 13:28
6/6
what a shame. Atari made some of the best games of the 80's and 90's, but sence the PS2, atari has sort of disapointed me.