US arm of Atari files for Chapter 11 bankuptcy

Atari Logo

By on January 21, 2013 at 5:30 pm

Big news just breaking out of the US is that Atari, iconic game publisher and developer, has filed for bankruptcy of its United States arm.

The L.A. Times is reporting that the US arm and its three affiliates filed for bankruptcy in an effort to “break free” from their French parent company, Atari S.A, who are believed to be in debt.

If the bankruptcy filing is successful, Atari’s US arm could emerge free from the debt of its parent company, which would give it a lot more room to stay afloat in an already struggling market.

This isn’t the first time Atari has split, merged, re-formed and evolved: Atari Games, Inc split from Atari in 1984, then merged with JT Storage in the 1990s, was brought by Hasbro in 2001 and then re-named, then re-named again after being acquired by Infogrames. Video games, everybody!

Source: L.A. Times via Polygon

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8 comments (Leave your own)

jesus, whats with all these gaming companies going under :O obviously they been producing garbage games…i can’t remember the last game i bought with atari attached too it

 

High costs of game production, piracy and a changing gaming market all contribute.

Like you though Korbs I can’t even remember the last game I picked up that had Atari whacked on it somewhere? Neverwinter Nights maybe? (ie the mid 2000′s one), or maybe that was just the game symbol on the box and Atari had nothing to do with it lol

 

But where will I get new games for the Atari 2600?

 
 

So basically this is just an elaborate way of getting out of paying what they owe as a corporation.
They’ll try and get the US companies separated so the French companies can go under without paying their debts.

Nice.

Hope they don’t complain about piracy and people not paying for the things they use …

 

trb:
So basically this is just an elaborate way of getting out of paying what they owe as a corporation.
They’ll try and get the US companies separated so the French companies can go under without paying their debts.

Nice.

Hope they don’t complain about piracy and people not paying for the things they use …

Exactly. It’s funny how its so different when the shoes on the other foot, and we apparently should all be joyous that theyre shafting investors for a sum that massively outweighs any ‘loss’ from piracy.

The US has actually been stopping alot of these company breakups to avoid debt in the last 15 years or so (atleast when the parent company is in the US, and the debt gets piled on there) so hopefully this happens here too.

meji:
High costs of game production, piracy and a changing gaming market all contribute.

Costs of game production are of the order of $0.12 a unit, maybe $0.50 at most once u throw in bulk shipping to distributors. Practically negligable.

And the losses to piracy are equally miniscule now (actual counterfeiting that is, not the bullshite “its still a loss, even if they were never ever going to buy it” ‘piracy’ thats used as a catch-all excuse to gloss over all sorts of mismanagement)

And adapting to the marketplace is something that every business should be doing, and failure to do so is a symptom of mismanagement – not some unavoidable situation.

Basically, none of these factors would drive a competently managed company broke.

 

korbain:
jesus, whats with all these gaming companies going under :O obviously they been producing garbage games…i can’t remember the last game i bought with atari attached too it

I can, it was called Silverfall… nuff said.

 

Sega is next…. same story.

Former console manufacture turned software publisher.

 
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