Atari files for bankruptcy

Written by Russell Co. Posted in News

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Published on January 24, 2013 with No Comments

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Classic video-game maker Atari has filed for bankruptcy in the US in a bid to break away from its debt-laden French parent company. Founded back in 1972, the firm pioneered home video gaming with iconic titles such as Pong, Asteroids, and Centipede.

Atari Inc. and its three other US companies: Atari Interactive Inc., Humongous, Inc. and California US Holdings, Inc. have filed for bankruptcy to be free of its French parent company that is having “structural financial encumbrances” said the company.

Atari SA had taken over the Atari back in 2001 and the company has been in rough shape as it continually reported a decline in revenue in recent decades. In recent years however, Atari has moved away from home video gaming and moved on to mobile and digital platforms, which has translated some profit. Some of the popular mobile titles Atari has launched include Atari Greatest Hits, Outlaw, Breakout, and Asteroids Gunner. Curiously, a portion of the company’s revenue comes from the licensing of the Atari name and logo for “retro” merchandise.

Atari has changed hands quite a few times and surely someone will be interested in taking over the iconic company. “Within the next 90 to 120 days, the companies expect to effectuate a sale of all, or substantially all, of their assets,” Atari said in a statement. Another one bites the dust as this news follows THQ’s bankruptcy filing and the recent selling of its assets.