In November, Atari (ATAR) was flatlining; it posted a $11.9 million quarterly loss and said that there was “substantial doubt about our ability to continue as a going concern.” That was before it stopped developing games. And then its CEO quit.
Now Infogrames, Atari’s majority shareholder and the owner of the “Unreal” series, says its buying the rest of Atari for $11 million. They’ve also agreed to float Atari a $20 million loan to cover day-to-day operations until the deal is finalised.
Atari isn’t the only game publisher in trouble. Even a popular franchise like “Tomb Raider” wasn’t enough to keep SCi from seeking a lifeline from Time Warner (TWX) and a wealthy English investor last week.
Atari is the maker of the first modern video game console, but it was pushed out of that business in the early 90s. Its last console was the Atari Jaguar, released in 1993. rumour is Infogrames may take the Atari name, but then the question is, does the Atari name still have any cachet with gamers?