An Atari bankruptcy seems to signal "Game Over" for the longtime video games company. Recent reports have indicated that the 40-year-old business has filed for Chapter 11 in a New York court.
A report on Jan. 21 from AP via Washington Post notes that the major effort is for the U.S. operations of Atari to separate from the French parent company. Atari is basically looking to restructure itself to continue its U.S. growth moving forward in the mobile and digital gaming realms.
The company Infogrames Entertainment in France took a stake in Atari back in 2000, and then acquired a remaining stake in 2008. Afterwords, it changed its name to "Atari S.A." However, the United States branch of the company is continuing to perform well, while the French parent is not. In fact, they reported expectations of "a significant loss" in 2012 when they report their financial figures. Meanwhile, the U.S. branch has been growing nicely, and has been expanding with its digital and licensing revenue.
Due to all of this, Atari has filed for Chapter 11 in a U.S. Bankruptcy Court in Southern District of New York. It reported $1 to $10 million in assets, and an overwhelming $10 to $50 million in debt. Therefore, they are seeking financing from a private investment firm, Tenor Capital Management, to help things continue along their anticipated path of success in the United States.
The Atari company was first brought into inception back in 1972, making for a 40-year span of video game manufacturing. One of its original consoles, the Atari 2600, was considered a classic platform for its time, with games and a joystick controller that seem simplistic compared to modern times. However, the company was an early innovator in a marketplace which expanded and developed nicely over the decades. Among the hit games the classic Atari video game company brought to the masses are "Pong," "Centipede," and "Asteroids."
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