Atari bankruptcy: Atari US files for Chapter 11 protection, but not yet ‘game over’By Angel Cuala on Jan 22, 2013 in Business, Gaming, Technology, United States •
Atari US has filed for Chapter 11 bankruptcy protection in its hope to separate from its troubled French parent company, Atari SA. This means that the American branch of the iconic video games company is not yet considered as “game over.” It will still continue and aims to be even more applicable to the digital age.
Image Credit: Atari.com
According to a press release by the company released on Monday, January 21, 2013, Atari Inc., Atari Interactive Inc., Humongous, Inc., and California US Holdings, Inc., have jointly filed petitions for relief under Chapter 11 in New York, hoping to save itself from its parent company’s debt crisis.
As noted by Atari US, the said companies are expecting to sell all their assets, which include all of its brands and logos, within the next three to four months. It may conduct a company reorganization that can help save the company from further financial trouble and continue its growth in the the competitive world of video games.
Among Atari‘s digital video games that have been released include Greatest Hits, Outlaw, Breakout, and Asteroids Gunner. Earlier, the company announced its upcoming mobile and tablet games based upon the famous Rollercoaster Tycoon franchise and Atari Casino.
Atari, which is known for famous video games such as Pong, Asteroids, Centipede, Test Drive, among others, has shifted its business model from the traditional retail game titles to digital video games for iOS and Android devices since 2010; and has even added new business models such as advertising.
As a positive result, the company emphasized that it had consecutive annual profits in 2011 and 2012, a notable milestone that the company has not reached for around ten years. With that, the Atari bankruptcy filing could just be a good game plan, especially if investors will grab the chance to buy the company soon.
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