For hardcore and longtime video game fans, Atari is seen as one of the early shakers and movers of the video game industry, but today Atari announced that it has filed bankruptcy protection under Chapter 11.
Pong was king
Atari, which was founded in 1972, produced coin-op sensations during the 70s and 80s such as Asteroids, Breakout, Centipede, Pong, and Missile Command. Atari also produced one of the most successful home video game consoles—the Atari 2600, which introduced millions of people to the joys of video gaming.
But Atari never was able to regain the former glory of its past and tried to make its mark again with producing video titles that tried to capture the gaming public’s attention again, but could not get the formula for success again quite right.
Jim Wilson, CEO of Atari explained the Chapter 11 decision for his company by stating:
“[We] have decided to take what we think is the best decision to protect the company and its shareholders.”
Atari’s parent company in France, Atari SA, has not posted any profits since 1999 and is going though similar bankruptcy proceedings.
Atari was hoping to reinvent itself by concentrating on the production of mobile games, and although this area of the video game business looked promising, Atari said that it was “starved for funds and unable to finance its continued growth.”
Although Atari has filed for Chapter 11, it will continue to do business as it restructures its operations in the next 90 to 120 days.
Via Washington Post