Atari, Inc. (formerly GT Interactive)

{{pic|GT Interactive Software logo.svg|GT Interactive logo}}

GT Interactive Software Corp. was founded in February 1993 in New York as the video game publishing division of GoodTimes Home Video, a video-tape distributor owned by the Cayre family, with Ron Chaimowitz as co-founder and president. In its first year, revenue reached $10.3 million.{{cite news |last=Eng |first=Paul M. |date=September 2, 1996 |title=Lots of "Doom" but No Gloom |url=http://www.businessweek.com/1996/36/b349199.htm |publisher=The McGraw-Hill Companies |website=Business Week |archive-url=https://web.archive.org/web/19970617025726/http://www.businessweek.com/1996/36/b349199.htm |archive-date=1997-06-17 |access-date=2015-06-05}} Their first product was the retail release of Wolfenstein 3D.{{Cite web |date=1996-11-05 |title=GT Interactive - Company Info |url=http://www.gtinteractive.com/1eftKro1/company-info.html |access-date=2024-09-15 |archive-url=https://web.archive.org/web/19961105162028/http://www.gtinteractive.com/1eftKro1/company-info.html |archive-date=1996-11-05 }} GT was unusual among many publishers as they allowed developers they contracted to retain their intellectual property.{{Citation needed|date=June 2023}}

GT Interactive revenue soared 880% and reached $101 million in its second year of existence, with profits reaching $18 million.[http://www.secinfo.com/$/SEC/Filing.asp?T=svr4.65Ts_1qyz SEC Info – Atari Inc – 10-K – For 3/31/99, On 6/29/99 – Table in Document 1 of 9 – 10-K – GT Interactive Software Corp.] GT Interactive's partnership with id Software scored another hit with Doom II: Hell on Earth, which was released in October 1994 and sold over 2 million copies. In February 1995, GT Interactive obtained the publishing rights to games based on Mercer Mayer property, which included Little Critter and Little Monster.{{Cite web |title=GT INTERACTIVE REPORTS RECORD SECOND QUARTER REVENUES; Publishing Business Increases Nearly 300 Percent. – Free Online Library |url=http://www.thefreelibrary.com/GT+INTERACTIVE+REPORTS+RECORD+SECOND+QUARTER+REVENUES%3B+Publishing...-a018547655 |url-status=dead |archive-url=https://web.archive.org/web/20131017184609/http://www.thefreelibrary.com/GT+INTERACTIVE+REPORTS+RECORD+SECOND+QUARTER+REVENUES%3b+Publishing...-a018547655 |archive-date=2013-10-17 |access-date=2016-06-05}} GT Interactive began to set up displays at Kmart and Walmart for low cost software.{{Cite web |title=SEC Info - Atari Inc - 'POS AM' on 5/1/97 |url=http://www.secinfo.com/dsvr4.83wj.htm |access-date=2024-05-01 |website=www.secinfo.com}} GT Interactive signed an exclusive software supplier agreement with Walmart that meant, according to UBS Securities analyst Michael Wallace, "All software developers have to deal with GT if they want to sell in a Walmart."

In March 1995, GT Interactive signed a $35 million deal with Midway Games to become the exclusive distributor for Midway products outside North America for four years, to end in 1998, and was later expanded to end at the end of March 2000.{{cite web | url=https://www.gamespot.com/articles/gt-files-suit-against-midway/1100-2460378/ | title=GT Files Suit Against Midway }}

In December 1995, GT Interactive debuted on the NASDAQ stock exchange under the stock symbol GTIS.{{Cite web |title=SEC Info - Atari Inc - '10-Q' for 6/30/97 |url=http://www.secinfo.com/dsvr4.86Pa.htm |access-date=2024-05-01 |website=www.secinfo.com}} Raising $140 million with its initial public offering, it was one of the biggest IPOs of the year.[https://caselaw.findlaw.com/us-2nd-circuit/1471355.html Rothman v. Gregor GT LLP] GT Interactive offered 10 million shares to the public at $14 each. During GT Interactive's IPO, Joseph Cayre sold more than 1.4 million shares, 9.2% of his shares, for a $20 million return. GT Interactive reported a strong revenue growth of 134% in the year to $234.4 million but, in the first sign of trouble ahead, profits increased a meager 23% to $22.6 million.[http://www.secinfo.com/dsvr4.65Ts.htm SEC Info – Atari Inc – 10-K – For 3/31/99]

In January 1996, GT Interactive obtained the publishing rights for the highly anticipated Quake from id Software.{{cite web|url=https://books.google.com/books?id=7g4EAAAAMBAJ&q=T+Interactive+Software+Corp.+has+acquired+the+worldwide+publishing+rights+to+id+Software%27s+%22Quake.&pg=PA96|title=GT Interactive Software Corp. has acquired the worldwide publishing rights to id Software's "Quake.|magazine=Billboard|page=96|date=January 27, 1996|access-date=July 3, 2019}} The game was released in June of that year where it was released to huge success, selling 1.8 million copies,{{cite web |title=Now What Was That GT and Hasbro Were Saying About American Game Purchasers Being a Group of 17–28 Year Olds Only Interested in Bloody Games? |url=http://justadventure.com/articles/What_Was_That/What_Was_That.shtm |website=Just Adventure |access-date=February 5, 2012 |archive-url=https://web.archive.org/web/20101206145241/http://justadventure.com/articles/What_Was_That/What_Was_That.shtm |archive-date=2010-12-06}} becoming a PC classic. In February, GT Interactive and Target signed an agreement in which GT Interactive became the primary consumer software supplier to all Target's 675 stores.{{Cite web |url=http://www.thefreelibrary.com/GT+Interactive+and+Target+Stores+enter+distribution+agreement%3B+GT...-a017963881. |title=GT Interactive and Target Stores enter distribution agreement; GT Interactive to Become Primary Software Vendor to More Than 600 Target Stores Nationwide. – Free Online Library |access-date=2016-06-05 |archive-date=2012-10-22 |archive-url=https://web.archive.org/web/20121022143500/http://www.thefreelibrary.com/GT%20Interactive%20and%20Target%20Stores%20enter%20distribution%20agreement%3B%20GT...-a017963881. |url-status=dead }}

By 1996, GT Interactive began expanding by purchasing other publishers and distributors. The company purchased budget publisher WizardWorks for 2.4 million shares on June 25, which would form together as part of the company's GT Value Products division. WizardWorks' Macintosh publishing division MacSoft became a stand-alone division of GT. On 1 July, they purchased FormGen for 1 million shares{{cite press release |url=http://www.thefreelibrary.com/GT+Interactive+Acquires+FormGen%2c+Publishers+of+Number+One+PC+Software...-a018491525 |title=GT Interactive Acquires FormGen, Publishers of Number One PC Software Hit, 'Duke Nukem 3D'; Highly Anticipated 'Shadow Warrior' Now Part of GT Lineup. |publisher=GT Interactive |date=July 1, 1996 |via=The Free Library |archive-date=May 14, 2014 |archive-url=https://web.archive.org/web/20140514144801/http://www.thefreelibrary.com/GT+Interactive+Acquires+FormGen%2c+Publishers+of+Number+One+PC+Software...-a018491525 |url-status=dead}} and followed this up on July 11 by purchasing Humongous Entertainment for 3.5 million shares, or $76 million.{{cite news| url=http://www.bizjournals.com/seattle/stories/1996/07/15/story5.html | first=M. Sharon | last=Baker | title=Humongous lives up to name with $76 million sale | date=July 14, 1996}}{{cite web |url=https://www.nytimes.com/1996/07/11/business/company-news-gt-interactive-acquires-humongous-entertainment.html |title=Company News;GT Interactive Acquires Humongous Entertainment |date=July 11, 1996 |website=The New York Times |access-date=October 3, 2021 |archive-date=September 25, 2021 |archive-url=https://web.archive.org/web/20210925134248/https://www.nytimes.com/1996/07/11/business/company-news-gt-interactive-acquires-humongous-entertainment.html |url-status=live }} Humongous formed as the first developer owned by the publisher, and their revenue had revenue had risen to $10 million in 1995, an increase of 233% over 1994's revenue of $3 million. In November, GT would gain an expanded distribution arm in Western Europe by purchasing Warner Interactive Europe (including Renegade Software) from Time Warner for $6.3 million in cash.

In a sign of uncertainty for its future, GT Interactive, for the year, reported a net income increase of only 11% over the previous year to $25.1 million. Revenue growth also decelerated to 56%, revenue for the year was $365 million. Making matters worse, net income in the fourth quarter reduced 16.8% to $8.5 million when compared to 1995's fourth quarter.

In January 1997, GT Interactive bought One Stop, a European value software publisher, for $800,000 in cash. In June GT Interactive signed a deal with MTV, the deal gave GT Interactive the rights to publish games based on Beavis and Butt-head and Æon Flux.{{cite magazine |title=Tidbits... |magazine=Electronic Gaming Monthly|issue=98|publisher=Ziff Davis|date=September 1997|page=20}} By October, GT Interactive added their second developer purchase to their portfolio - SingleTrac, for $14.7 million — $5.4 million in cash and $9.3 million in stock. SingleTrac owned and developed such games as Twisted Metal and Jet Moto.[http://www.secinfo.com/dsvr4.5174.htm SEC Info – Atari Inc – 10-Q – For 12/31/99]{{cite magazine |title=Tidbits... |magazine=Electronic Gaming Monthly|issue=98|publisher=Ziff Davis|date=September 1997|page=23}} In September, Humongous division Cavedog Entertainment, made its first release, Total Annihilation,[http://www.gamespot.com/pages/tags/index.php?type=game&tags=cavedog cavedog - GameSpot] which sold more than 1 million copies.

On October 5, 1997, GT Interactive announced that it had signed a definitive agreement to acquire MicroProse for $250 million in stock; the deal had even been unanimously approved by the Board of Directors of both companies and was expected to be completed by the end of that year.{{cite news| url=https://www.nytimes.com/1997/10/06/business/250-million-stock-deal-for-microprose.html | work=The New York Times | title=$250 Million Stock Deal for Microprose | date=October 6, 1997 | access-date=May 4, 2010}} The merger would have made GT Interactive the second largest U.S. gaming software company, exceeded only by Electronic Arts.{{cite magazine |title=GT Interactive Grabs MicroProse |magazine=Next Generation|issue=36|publisher=Imagine Media |date=December 1997|page=20}} But on December 5 the acquisition was cancelled, according to both CEOs "the time is simply not right" for the deal. MicroProse's stock plummeted after the announcement of the deal's cancellation.{{cite news| url=https://www.nytimes.com/1997/12/06/business/company-news-microprose-and-gt-interactive-end-merger-talks.html | work=The New York Times | title=Company News; Microprose and GT Interactive End Merger Talks | date=December 6, 1997 | access-date=May 4, 2010}} GT Interactive's result was negatively affected because, in March, they stopped being the exclusive computer software distributor to Walmart, who decided to buy its software directly from the publishers.{{cite web|url=http://www.thefreelibrary.com/GT+Interactive+reaches+understanding+with+Wal-Mart,+enabling+the+mass...-a019238235|archiveurl=https://web.archive.org/web/20121107225530/http://www.thefreelibrary.com/GT+Interactive+reaches+understanding+with+Wal-Mart%2c+enabling+the+mass...-a019238235|title=GT Interactive reaches understanding with Wal-Mart, enabling the mass merchant to begin purchasing directly from other software publishers|website=Business Wire|archivedate=November 7, 2012|date=March 24, 1997|accessdate=September 4, 2021|via=The Free Dictionary}}

In 1997, GT Interactive's share of the entertainment software market reached a historical low of 6.4% down from the record highs of 9% and 10% years earlier. GT Interactive was a leader only on the arcade/action category, with a 20.3% market share. Making matters worse, GT Interactive also had a high debt/equity ratio of 41%; for comparison, Electronic Arts had a debt/equity ratio of just 8%. For 1997 GT Interactive's return on equity was a dismal -16.14%.[http://www.johnson.cornell.edu/parkercenter/docs/studentresearch/1998_spring/erts.pdf ElecArts.PDF] {{webarchive|url=https://web.archive.org/web/20070610051324/http://www.johnson.cornell.edu/parkercenter/docs/studentresearch/1998_spring/erts.pdf |date=2007-06-10 }} For the year, GT Interactive's revenue growth continued to decelerate, increased only 45% to $530 million.[http://www.atnewyork.com/news/article.php/249211 GT Interactive Hires Disney Honcho, Raises Cash] {{webarchive|url=https://web.archive.org/web/20080112151412/http://www.atnewyork.com/news/article.php/249211 |date=2008-01-12 }} During 1997 GT Interactive posted its first net loss, totaling $25 million.

In May 1998, Epic Games's Unreal, which was published through GT, sold over 800,000 copies. For WizardWorks, Deer Hunter II, which was released in October, also sold 800,000 copies. In November, GT Interactive bought OneZero Media for $17.2 million in stock and $20 million in total, becoming the first game publisher to own an entertainment Internet website.{{cite web|first=Jason|last=Ocampo|url=http://www.gamecenter.com/News/Item/0,3,0-2248,00.html|archive-url=https://web.archive.org/web/20000118080321/http://www.gamecenter.com/News/Item/0,3,0-2248,00.html|title=GT Interactive Buys Portal|website=gamecenter.com|archive-date=January 18, 2000|date=November 5, 1998|access-date=July 12, 2019}} In the fourth quarter of 1998, GT Interactive posted a net income of $16.7 million on revenues of $246.3 million.[http://www.secinfo.com/$/SEC/Filing.asp?T=svr4.5174_3wu SEC Info – Atari Inc – 10-Q – For 12/31/99, As Of 2/14/00 – Table in Document 1 of 2 – 10-Q – GT Interactive Software Corp.] For the year, GT Interactive reported revenues were almost flat rising 10% to $584 million, but GT Interactive swung into black by posting a $20.3 million net income (results from the fiscal year ending on December 31, 1998).

In January 1999, GT Interactive started the year with two additional developer purchases; Legend Entertainment, a developer which commonly published its titles through GT{{cite web|last=Morris|first=Chris|date=January 7, 1999|title=Microsoft buys MechWarrior developer|url=https://money.cnn.com/1999/01/07/life/fasa/|access-date=September 28, 2020|website=CNN Money|archive-date=October 19, 2020|archive-url=https://web.archive.org/web/20201019002434/https://money.cnn.com/1999/01/07/life/fasa/|url-status=live}} and British based Reflections Interactive.{{cite web |last=Murawska |first=Renata |date=January 19, 1999 |title=GT Interactive adds another software developer to its stable |url=https://www.arnnet.com.au/article/110465/gt_interactive_adds_another_software_developer_its_stable/ |website=ARN}} Legend was purchased for $2 million, while Reflections was purchased for a reported 2.7 million shares of common stock, which was valued at around {{US$|14.17 million|link=yes}}. In the same month, GT Interactive filed a lawsuit against Midway Games for a breach of contract for failing to inform them of new game releases and trying to run off with the money from the deal.{{cite web | url=https://www.ign.com/articles/1999/01/26/gt-slaps-midway-with-lawsuit | title=GT Slaps Midway with Lawsuit | date=26 January 1999 }}{{cite web | url=https://www.gamespot.com/articles/gt-gets-earful-from-midway/1100-2452656/ | title=GT Gets Earful from Midway }} The lawsuit ended on good faith between both companies six months later.{{cite web | url=https://www.gamespot.com/articles/gt-settles-with-midway/1100-2450439/ | title=GT Settles with Midway }}

During the year, GT Interactive posted first-quarter losses of $90 million due to restructuring costs. In February, in light of the bad results, CEO Ron Chaimowitz was replaced. Game sales in 1999 fell in comparison to 1998, which had dire consequences on GT Interactive's finances. In April, GT Interactive predicted for 2000 a first quarter loss of $55 million on revenues of around just $95 million. A failure to release 5 major games and a planned relocation to Los Angeles added to the losses.{{citation needed|date=July 2014}} In June GT Interactive announced it had hired Bear Stearns to look into the possibility of either a merger or a sale of the company and in October GT Interactive fired 35% of its workforce, or 650 employees, mostly from its distribution section.{{cite news| url=https://www.nytimes.com/1999/11/16/business/infogrames-gets-control-of-gt-interactive.html | work=The New York Times | title=Infogrames Gets Control of GT Interactive | date=November 16, 1999 | access-date=May 4, 2010}}{{failed verification|date=June 2016}} In June, Reflections-developed Driver was released, selling approximately 1 million copies. In July GT Interactive sold OneZero Media for $5.2 million in cash, just six months after it was purchased.

On November 16, France-based Infogrames Entertainment SA (IESA) announced that it would buy 70% of GT Interactive for $135 million and assume $10.5 million in debt, a deal completed by December 17.{{cite press release |author= |date=December 17, 1999 |title=Infogrames Entertainment Completes Acquisition of Controlling Stake in GT Interactive Software |url=http://www.us.infogrames.com/corporate/investor_relations/gtis/121799_gtdealclosure.asp |publisher=Infogrames |archive-url=https://web.archive.org/web/20000815071957/http://www.us.infogrames.com/corporate/investor_relations/gtis/121799_gtdealclosure.asp |archive-date=2000-08-15 |access-date=2016-06-05}} IESA's acquisition came just in time because GT Interactive's 1999 results were dismal. Revenues fell 30% to $408 million in 1999 and GT Interactive posted a net loss of $254 million for the year (results with the fiscal year ending on December 31, 1999).[http://www.secinfo.com/$/SEC/Filing.asp?T=svr4.65Ts_52cq SEC Info – Atari Inc – 10-K – For 3/31/99, On 6/29/99 – Table in Document 1 of 9 – 10-K – GT Interactive Software Corp.] Infogrames' purchase of GT Interactive allowed the company to hold a "distribution network for all of its products in the United States".

In February 2000, GT announced the closure of Humongous subsidiary Cavedog Entertainment as part of a post-purchase restructuring.{{Cite web |title=Cavedog Caves In |url=https://www.gamespot.com/articles/cavedog-caves-in/1100-2446540/ |access-date=2024-05-06 |website=GameSpot |language=en-US}} On May 10, IESA announced that the company would be renamed from GT Interactive, Inc. to Infogrames, Inc. to better represent the Infogrames brand in the country.{{cite press release |author= |date=May 10, 2000 |title=GT Interactive to Adopt Infogrames Brand Across the Company and Its Products |url=http://www.us.infogrames.com/corporate/investor_relations/gtis/051000_gtname.asp |location=Los Angeles |publisher=Infogrames |archive-url=https://web.archive.org/web/20000815052912/http://www.us.infogrames.com/corporate/investor_relations/gtis/051000_gtname.asp |archive-date=2000-08-15 |access-date=2016-06-05}} In June 2000, IESA purchased developer Paradigm Entertainment for $19.5 million and placed them under the ownership of Infogrames, Inc.{{Cite news |date=2000-06-30 |title=Infogrames buys Paradigm |url=https://www.eurogamer.net/article-28240 |access-date=2024-05-06 |work=Eurogamer.net |language=en}} In October, ISEA's former North American arm, the California-based Infogrames North America, Inc. (which was formerly Accolade), was consolidated into the new Infogrames, Inc. and hence became IESA's de-facto North American division. In December 2000, Infogrames, Inc. secured a licensing deal to publish games based on the Dragon Ball media franchise from its North American license holder FUNimation.{{cite web | url=https://www.ign.com/articles/2000/12/01/infogrames-acquires-dragon-ball-z | title=Infogrames Acquires Dragon Ball Z | date=December 2000 }}

In January 2001, IESA completed the sale of Hasbro Interactive (which had been renamed Infogrames Interactive, Inc.) and folded its North American publishing arms under Infogrames, Inc., allowing the company to publish titles featuring Hasbro licenses and the legendary Atari brand. In October, Infogrames, Inc. and Infogrames Europe licensed the Atari brand from Infogrames Interactive and began using it as a secondary publishing label for their core titles aimed towards an 18-34 year-old market. MX Rider, Splashdown and TransWorld Surf were the first three titles to be branded under the reinvented name.{{cite web |title=Infogrames ready to ship first games under Atari brand|work=gamespot.com |date=31 October 2001 |url=https://www.gamespot.com/articles/infogrames-ready-to-ship-first-games-under-atari-brand/1100-2821519/ |access-date=19 May 2018 |archive-date=19 May 2018 |archive-url=https://web.archive.org/web/20180519204858/https://www.gamespot.com/articles/infogrames-ready-to-ship-first-games-under-atari-brand/1100-2821519/ |url-status=live }}

In May 2002, Shiny Entertainment was placed under Infogrames, Inc. management after IESA purchased the developer from Interplay Entertainment for $47 million.{{cite web |url=http://pc.gamezone.com/news/04_25_02_01_49PM.htm |title=Infogrames Acquires both Shiny Entertainment and Exclusive Matrix License|publisher=Pc.gamezone.com |access-date=3 January 2018 |archive-url=https://web.archive.org/web/20050308054244/http://pc.gamezone.com/news/04_25_02_01_49PM.htm |archive-date=8 March 2005 |url-status=dead }} The deal also included the license to The Matrix and upcoming video game title Enter the Matrix. Although not a critical success when it was released in May 2003, it represented itself as being one of the most expensive video games ever developed and was a sales success for Infogrames, sold 1.38 million units for the PlayStation 2 and 1 million units for the GameCube.{{Cite web |last=Fahey |first=Rob |date=2003-05-23 |title=Enter the Matrix sells a million |url=https://www.gamesindustry.biz/enter-the-matrix-sells-a-million |access-date=2024-09-15 |website=GamesIndustry.biz |language=en}}

{{See also|List of Atari video games (2001–present)}}

On May 8, 2003, Infogrames Entertainment SA announced that they would rebrand all its subsidiaries under the Atari brand name. Infogrames, Inc. would license the Atari brand from Atari Interactive, Inc. and would be renamed as Atari, Inc., becoming 'ATAR' on the NASDAQ stock market.

Titles released during this time included critical and commercial flops such as Driver 3, released in June 2004.{{Cite news |date=2011-07-24 |title=Retrospective: Driv3r |url=https://www.eurogamer.net/retrospective-driv3r-article |access-date=2024-09-15 |work=Eurogamer.net |language=en}} However, much of Atari, Inc.'s profits and sales figures came from Dragon Ball titles, including the Dragon Ball Z: Budokai series of games and the Dragon Ball Z: The Legacy of Goku series of games for the Game Boy Advance. These games have topped the best-seller charts for numerous console platforms since the release of Atari's first Dragon Ball Z game, The Legacy of Goku in 2002, which was the first Dragon Ball game to be made by an American company, Webfoot Technologies. In January 2005, Atari and Funimation renewed their partnership for the franchise{{Cite web |date=2005-01-12 |title=Atari And Funimation Agree To Exclusive Multi-Year Extension Of Dragon Ball License |url=https://www.gamesindustry.biz/atari-and-funimation-agree-to-exclusive-multi-year-extension-of-dragon-ball-license |access-date=2024-09-15 |website=GamesIndustry.biz |language=en}}{{cite web |author=Keiser, Joe |date=August 2, 2006 |title=The Century's Top 50 Handheld Games |url=http://www.next-gen.biz/index2.php?option=com_content&task=view&id=3557&Itemid=2&pop=1&page=0 |url-status=dead |archive-url=https://web.archive.org/web/20071010052300/http://www.next-gen.biz/index2.php?option=com_content&task=view&id=3557&Itemid=2&pop=1&page=0 |archive-date=October 10, 2007 |work=Next Generation}} and with that released more titles including Dragon Ball Z: Supersonic Warriors, Dragon Ball Z: Super Sonic Warriors 2, Dragon Ball Z: Sagas, Dragon Ball GT: Transformation, Dragon Ball: Advanced Adventure and Super Dragon Ball Z. Another lineup of licensed titles was those based on Godzilla, developed by Pipeworks Software. The series started with Godzilla: Destroy All Monsters Melee for the GameCube which was released on October 11, 2002, to much success before it was ported to the Microsoft Xbox a year later.{{Cite web |title=Godzilla: Save the Earth Feature Preview |url=https://www.gamespot.com/articles/godzilla-save-the-earth-feature-preview/1100-6110633/ |access-date=2024-09-15 |website=GameSpot |language=en-US}} It was followed by a sequel, Godzilla: Save the Earth for the PlayStation 2 and the Xbox, on November 16, 2004. Despite Save the Earth{{'}}s relative commercial failure, Godzilla: Unleashed was released for the PS2 on November 20, 2007, and the Wii on December 5, 2007. Unleashed was accompanied by Godzilla Unleashed: Double Smash for the Nintendo DS, which was released on November 20, 2007.

Alongside new releases, Atari, Inc. also released compilations honoring the classic Atari library, including Atari Anthology on PC and consoles, Atari Masterpieces in two volumes on Nokia N-Gage,{{Cite web |date=2005-05-12 |title=Atari Masterpieces Volumes 1 & 2 Bring Your Favorite Classics To The N-Gage Platform |url=https://www.gamesindustry.biz/atari-masterpieces-volumes-1-2-bring-your-favorite-classics-to-the-n-gage-platform |access-date=2024-09-15 |website=GamesIndustry.biz |language=en}} and Retro Atari Classics for Nintendo DS. The company went into hardware in 2004 with Atari Flashback, designed and produced by Atari consultant Curt Vendel through his engineering firm Legacy Engineering. With only a 10-week development window, what they produced looked like a miniature version of the Atari 7800 console originally released in 1984. Twenty classic Atari titles were built into the system.{{Cite web |date=2004-09-07 |title=Go 'Old School' for the Holidays with the 'Atari Flashback' Classic Game Console |url=https://www.gamesindustry.biz/go-old-school-for-the-holidays-with-the-atari-flashback-classic-game-console |access-date=2024-09-15 |website=GamesIndustry.biz |language=en}}{{Cite web |title=Atari Flashback |url=https://www.videogamesmuseum.org/en/atgames/atari-flashback-42 |access-date=2024-09-15 |website=Atari Flashback |language=en}} The success of Flashback led to the creation of a follow-up Flashback 2, released in August 2005, based on an implementation of the original Atari 2600 on a single chip that Curt Vendel designed, allowing the original 2600 games to be run instead of ports as in the first Flashback. A total of forty titles were available for the system,{{Cite web |title=Atari Flashback 2 {{!}} The Spokesman-Review |url=https://www.spokesman.com/stories/2005/oct/03/atari-flashback-2/ |access-date=2024-09-15 |website=www.spokesman.com|date=3 October 2005 }} including Pitfall! licensed from Activision.https://investor.activision.com/news-releases/news-release-details/atari-and-activision-ink-licensing-agreement-atarir-flashback-2 From 2011 onwards, the Flashback series was licensed out to AtGames.https://img.pr.com/release-file/1109/351732/PRESSRELEASEFORATARIFB3LAUNCH.pdf

In Atari, Inc.'s fourth quarter results in June 2005, the company announced that they would divest and dispose of various "non-core" assets that they no longer saw as part of their upcoming strategic visions or creative directions.{{cite web | url=https://www.gamesindustry.biz/atari-reports-fiscal-2005-fourth-quarter-and-year-end-results | title=Atari Reports Fiscal 2005 Fourth Quarter and Year-End Results | date=15 June 2005 }} In August 2005, the company laid off the development portion of Humongous Entertainment and divested what was now named Humongous, Inc. over to Infogrames for shares worth {{US$|10.3 million}}, but retaining a distribution deal for Humongous' titles up until March 2006.{{cite web |url=https://www.bloomberg.com/news/articles/2005-08-28/atari-sells-humongous-to-infogrames-for-10-dot-3-million |title=Atari Sells Humongous to Infogrames for $10.3 Million |date=August 28, 2005 |access-date=January 27, 2014 |publisher=Business Week |archive-date=September 23, 2018 |archive-url=https://web.archive.org/web/20180923200601/https://www.bloomberg.com/news/articles/2005-08-28/atari-sells-humongous-to-infogrames-for-10-dot-3-million |url-status=live}} which was later extended to March 2007.{{cite web |url=https://www.sec.gov/Archives/edgar/data/1002607/000095012306008390/y22324e10vk.htm |title=Form 10-K |publisher=Atari, Inc. |date=June 29, 2006 |via=Electronic Data Gathering, Analysis, and Retrieval |access-date=December 4, 2023}} Infogrames would take over the Humongous brand shortly afterward.{{cite web | url=https://www.gamedeveloper.com/game-platforms/infogrames-announces-relaunch-for-humongous-brand | title=Infogrames Announces Relaunch for Humongous Brand}}https://contracts.onecle.com/atari-inc/infogrames-transfer-2005-08-22.shtml

In 2006, Atari, Inc. began the process of exiting the first-party development scene and sell-off their self-owned developers to raise cash and stave off the threat of bankruptcy.{{cite web |last=Brightman |first=James |url=http://www.gamedaily.com/articles/features/atari-to-sell-off-studios-in-turnaround-attempt/68582/ |title=Video Game Features, PC Game Features |publisher=Gamedaily.com |date=17 February 2006 |access-date=3 January 2018 |archive-date=2 December 2008 |archive-url=https://web.archive.org/web/20081202052042/http://www.gamedaily.com/articles/features/atari-to-sell-off-studios-in-turnaround-attempt/68582/ |url-status=live }} On May 10, the company sold the Games.com web portal, which had been under control of the company following the Hasbro Interactive purchase, to AOL.[https://web.archive.org/web/20150311010904/https://gigaom.com/2006/05/10/aol-buys-gamescom-from-infogrames-atari/ AOL buys Games.com] gigaom.com On the same day, Developer Paradigm Entertainment and the Stuntman franchise were purchased by THQ{{cite web |url=http://www.gamesindustry.biz/content_page.php?aid=16870 |title=THQ buys Paradigm and Stuntman // News // GamesIndustry.biz |publisher=Gamesindustry.biz |access-date=3 January 2018 |archive-date=29 June 2006 |archive-url=https://web.archive.org/web/20060629134547/http://www.gamesindustry.biz/content_page.php?aid=16870 |url-status=live }} while publishing rights to TimeShift were sold to rival Vivendi Games. The sales would generate $25 million in revenue for the company.{{Cite web|url=https://www.gamedeveloper.com/pc/e3-atari-infogrames-sell-i-stuntman-timeshift-i-games-com-paradigm|title=E3: Atari, Infogrames Sell Stuntman, Timeshift, Games.com, Para|date=10 May 2006|website=Game Developer|access-date=17 July 2023}} On July 13, Reflections Interactive and the Driver franchise were sold to Ubisoft for $21.6 million{{cite web |last=Thorsen |first=Tor |url=http://www.gamespot.com/news/6161434.html |title=Cost-cutting puts Atari in black-barely — Xbox 360 News at GameSpot .com |date=9 November 2006 |access-date=3 January 2018 |archive-date=8 December 2008 |archive-url=https://web.archive.org/web/20081208181312/http://www.gamespot.com/news/6161434.html |url-status=live }} while Shiny Entertainment was acquired by Foundation 9 Entertainment for $1.6 million on 2 October, a large drop in price from when Infogrames purchased the studio.[https://www.gamedeveloper.com/game-platforms/foundation-9-acquires-shiny-from-atari Foundation 9 Acquires Shiny From Atari], GamaSutra, 2 October 2006 Atari Melbourne House, another studio previously placed under the control of Atari, Inc., was sold on 2 November to Krome Studios, a fellow Australian development studio.{{cite web |url=http://www.kromestudios.com/press/pressmain.php?id=00094 |title=Krome Studios expands with new studio in Melbourne |date=3 November 2006 |publisher=Krome Studios |access-date=2010-02-03 |archive-url=https://web.archive.org/web/20110929162812/http://www.kromestudios.com/press/pressmain.php?id=00094 |archive-date=29 September 2011}}

On 1 September, Atari, Inc. announced that its stock faced delisting from the Nasdaq stock exchange due to its price having fallen below $1.00.{{cite web |url=https://www.gamedeveloper.com/game-platforms/atari-to-fight-nasdaq-delisting-notice |title=Atari to Fight NASDAQ Delisting Notice |first=Simon |last=Carless |website=Gamasutra |date=1 September 2006|access-date=7 July 2019}} Games released during this time included Neverwinter Nights 2, continuing on Atari's licensing agreement with Hasbro, and Test Drive Unlimited, developed by Eden Games of France which was directly owned under Infogrames.

On 6 March 2008, IESA announced that it would purchase out all remaining public shares in Atari, Inc. for a value of US$1.68 per share or US$11 million total, making the publisher privately owned.[http://biz.yahoo.com/prnews/080306/nyth121.html?.v=101 Atari, Inc. Reports Receipt of Non-Binding Offer from Infogrames Entertainment S.A.: Financial News] Yahoo! Finance {{webarchive |url=https://web.archive.org/web/20080529210707/http://biz.yahoo.com/prnews/080306/nyth121.html?.v=101 |date=29 May 2008 }} Atari, Inc. accepted the offer on April 30[http://biz.yahoo.com/prnews/080430/nyw164.html?.v=1 Infogrames Entertainment S.A. and Atari, Inc. Announce Agreement to Merge: Financial News] Yahoo! Finance {{webarchive |url=https://web.archive.org/web/20080527190525/http://biz.yahoo.com/prnews/080430/nyw164.html?.v=1 |date=27 May 2008 }} which would soon lead to NASDAQ delisting them from the NASDAQ stock exchange on May 9{{cite web|url=http://www.next-gen.biz/news/atari-booted-nasdaq|title=Atari Booted from Nasdaq|website=edge-online.com|date=8 May 2008|access-date=7 July 2019}} While Atari attempted to appeal, they had received notice of its absolute delisting on 12 September 2008.[http://www.globenewswire.com/newsroom/news.html?d=150239 Delisting of Securities of Atari, Inc. From the NASDAQ Stock Market] {{Webarchive|url=https://web.archive.org/web/20090907170551/http://www.globenewswire.com/newsroom/news.html?d=150239 |date=7 September 2009 }} Source: The NASDAQ OMX Group, Inc. - GlobeNewswire, Inc. The Infogrames merger was officially completed on October 9, making Atari, Inc. a privately-owned company.{{cite web |url=http://corporate.infogrames.com/infogramesgb/2008/10/infogrames_entertainment_sa_an_1.php |title=Atari GB |publisher=Corporate.infogrames.com |date=9 October 2008 |access-date=3 January 2018 |archive-date=19 February 2009 |archive-url=https://web.archive.org/web/20090219211304/http://corporate.infogrames.com/infogramesgb/2008/10/infogrames_entertainment_sa_an_1.php |url-status=dead }} The deal allowed for Infogrames to be the only owner of the Atari brand.{{cite web |url=http://www.gamesindustry.biz/articles/infogrames-completes-atari-inc-acquisition |title=Infogrames completes Atari Inc acquisition // News |date=11 October 2008 |publisher=Gamesindustry.biz |access-date=3 January 2018 |archive-date=1 July 2017 |archive-url=https://web.archive.org/web/20170701172723/http://www.gamesindustry.biz/articles/infogrames-completes-atari-inc-acquisition |url-status=live }} Infogrames said that it planned to reduce administrative costs and to focus on online gaming.{{cite web |last=Magrino |first=Tom |url=http://www.gamespot.com/news/6199366.html |title=Infogrames concludes Atari acquisition|work=gamespot.com |date=13 October 2008 |access-date=3 January 2018 |archive-date=7 June 2009 |archive-url=https://web.archive.org/web/20090607034624/http://www.gamespot.com/news/6199366.html |url-status=live }} At the end of May 2009, Infogrames Entertainment SA was renamed as Atari SA, allowing for all subsidiaries to be branded under the single "Atari" moniker.{{cite web |last1=Haywald |first1=Justin |title=Atari Sheds Infogrames Branding |url=http://www.1up.com/news/atari-sheds-infogrames-branding |publisher=1UP.com |date=29 May 2009 |access-date=22 May 2018 |archive-url=https://web.archive.org/web/20160608160103/http://www.1up.com/news/atari-sheds-infogrames-branding |archive-date=8 June 2016}}

Games released during this period included Eden Games' Alone in the Dark reboot, released in 2008, Ghostbusters: The Video Game in 2009 and Test Drive Unlimited 2 in 2011.

Atari, Inc., including its fellow American subsidiaries, filed for bankruptcy in 2013. During Atari's bankruptcy sale in July 2013, most assets corresponding to GT Interactive were sold to Tommo, Inc., and later Billionsoft,{{Cite web |title=GT Trademark of BILLION SOFT (HONG KONG) LIMITED – Registration Number 2009337 – Serial Number 74550441 :: Justia Trademarks |url=https://trademarks.justia.com/745/50/gt-74550441.html}}

The company exited bankruptcy within a year, and following this, its parent group had a new corporate strategy revolving around new audiences outside the gaming industry, and mobile games, leading to lessened activities by Atari, Inc. The first release of note was Alone in the Dark: Illumination in 2015, which was universally panned by critics.{{Cite news |date=2019-05-15 |title=Meet the new Atari |url=https://mcvuk.com/business-news/publishing/meet-the-new-atari/ |access-date=2024-09-15 |work=MCV |language=en |issn=1469-4832}} For the rest of the decade, the company mainly released new titles in the RollerCoaster Tycoon series on various platforms, including RollerCoaster Tycoon World (2016), RollerCoaster Tycoon Classic (2017) and RollerCoaster Tycoon Adventures (2019), but during this period also released Tempest 4000, developed by Llamasoft (Jeff Minter) as a sequel to the original Tempest, on various systems including the Atari VCS.{{cite web | url=https://thegg.net/press-releases/tempest-4000-is-now-available-on-ps4-xbox-one-and-pc/ | title="Tempest 4000" is out now for PC and console - TGG | work=(TGG) | We are all about Gaming and entertainment! | date=17 July 2018 }}

With a renewed focus of its parent company, led by Wade Rosen, on Atari's retro library and IPs, in 2022 Atari released Kombinera, the first original IP title that Atari produced in many years. It is a puzzle-platformer, developed by Graphite Lab,{{Cite web |last=Valentine |first=Rebekah |date=2022-03-01 |title=Atari Is Publishing Kombinera, Its First Original Game In Years |url=https://www.ign.com/articles/atari-unveils-puzzle-platformer-kombinera |access-date=2024-09-15 |website=IGN |language=en}} and a game that fits into the "Atari gameplay motif" as part of the corporate strategy.{{Cite web |title=Universal Registration Document FY 2023 |url=https://atari-investisseurs.fr/wp-content/uploads/2023/08/Atari-Universal-Registration-Document-FY-2023.pdf}} 2023 saw the release of Mr. Run and Jump on consoles and computers, as well as a remake of Haunted House, developed by Orbit Studio.{{Cite web |date=2023-09-20 |title=Haunted House - Official Release Date Trailer - IGN |url=https://www.ign.com/videos/haunted-house-official-release-date-trailer |access-date=2024-09-15 |archive-url=https://web.archive.org/web/20230920121034/https://www.ign.com/videos/haunted-house-official-release-date-trailer |archive-date=2023-09-20 }} Atari have also been releasing remakes of classics under the Atari Recharged series since 2021.

On April 20, 2023, Atari re-purchased select titles that had previously been sold to Tommo and Billionsoft, including the GT Interactive brand.{{cite press release |title=Atari Announces Acquisition of More than 100 PC and Console |date=April 20, 2023 |url=https://www.globenewswire.com/news-release/2023/04/19/2650476/0/en/Atari-Announces-Acquisition-of-More-than-100-PC-and-Console-Titles-from-the-80s-and-90s.html |access-date=April 19, 2023}}

At CES 2023, Atari partnered with My Arcade who produced three dedicated consoles under license with built-in Atari classics: the Atari Gamestation Plus, Pocket Player, and Micro Player.{{Cite web |last=Wallace |first=Anthony |date=2023-01-06 |title=Atari Announce A New Handheld, Mini Arcade & Home Console |url=https://retrododo.com/atari-my-arcade/ |access-date=2024-09-16 |website=Retro Dodo |language=en-GB}}{{Cite web |last=Liszewski |first=Andrew |date=2023-01-17 |title=The Atari Gamestation Plus Is a Beautiful Modern Console For the Ugliest Retro Games |url=https://gizmodo.com/atari-gamestation-plus-mini-retro-console-wireless-play-1849996186 |access-date=2024-09-16 |website=Gizmodo |language=en-US}} In August 2023, Atari announced the 2600+ console, a product developed by Atari, Inc. and separate from the VCS and Flashback series.{{cite web | url=https://www.extremetech.com/gaming/the-atari-2600-plus-will-play-your-old-cartridges-on-your-modern-tv | title=The Atari 2600+ Will Play Your Old Cartridges on Your Modern TV | date=23 August 2023 }} In March 2024, Atari announced that it would bring its Atari Recharged series to arcades, which would be the first Atari arcade game since 1999's San Francisco Rush 2049.{{Cite web |last=Extension |first=Time |date=2024-03-12 |title=After 25 Years Away, Atari Is Returning To Arcades With Its "Recharged" Series |url=https://www.timeextension.com/news/2024/03/after-25-years-away-atari-is-returning-to-arcades-with-its-recharged-series |access-date=2024-09-15 |website=Time Extension |language=en-GB}} Another recreated hardware, Atari 7800+, was announced in August 2024, alongside Atari reissusing cartridges of old titles.{{Cite web |last=Jovanée |first=Alice |date=2024-08-20 |title=Atari announces the 7800 Plus console coming this winter |url=https://www.polygon.com/pre-order/441690/atari-7800-plus-price-availability-games |access-date=2024-09-16 |website=Polygon |language=en-US}} Yars Rising was released in September 2024.{{Cite web |title=Yars Rising |url=https://www.metacritic.com/game/yars-rising/ |access-date=2024-09-16 |website=www.metacritic.com |language=en}}

Atari was one of the companies using British legal company Davenport Lyons in 2008 to recover damages from computer users illegally downloading games. It stopped using the company when they were made aware of the false claims being made against innocent members of the public.[https://www.bbc.co.uk/blogs/watchdog/2008/12/davenport_lyons_threatening_le.html BBC Watchdog website, Davenport Lyons - threatening letters, 8 December 2008]

{{Commons|Atari}}

• List of Atari video games (2001–present)
• History of video games

{{Clear}}

{{Reflist|30em}}

• {{Official website}}
• {{cite web|url=http://gtinteractive.com/ |title=Official GT Interactive website |access-date=2016-04-02 |url-status = dead|archive-url=https://web.archive.org/web/19991111030208/http://gtinteractive.com/ |archive-date=1999-11-11 }}

{{Atari}}

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{{DEFAULTSORT:Atari, Inc. (1993-present)}}

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