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Atari to stop publishing and focus on developing?

Atari to stop publishing and focus on developing?

Atari has had money problems for a while now and drastic changes may be needed to save the company.

Oh dear - Atari isn't doing very well lately. The company which used to be at the forefront of gaming posted it's second quarter results a few days ago, revealing sales which had fallen by $13.3 Million to a net loss of $7.7 Million. Publishing revenue was down too, falling from $23.1 Million to $11.4 Million. Distribution revenue fell from $5.5 Million to $1.9 Million.

It's now been suggested by analysts like Michael Pachter of Webush Morgan that the company should undertake drastic measures in order to survive - namely ceasing all game publishing and cutting staff by up to 50 percent.

"It is likely," he said to Gamasutra, "that the company will cease its publishing operations altogether and become a pure distribution business. However, in order to profitably do so, we believe that it must cut its staffing levels by over 50%."

Pachter reckons that the CEO of the Atari will resign also, which seems like a safe bet, and that significant management changes will occur so that the company can get through the next financial year.

Oh, how the mighty have fallen.

Atari has been in trouble for a fairly long time now, but it looks like the company may not be able to take much more. Do you have an idea on how to save the gaming giant or should someone just take the ol' horse out to pasture? Let us know what you think in the forums.

4 Comments

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[USRF]Obiwan 21st November 2007, 16:50 Quote
I loved Atari, infact i was/am a Atari fan boy. I even got a Atari T-shirt that (if atari goes down) will be worth something too (i hope). Remember the masterpiece scifi movie BladeRunner, based on the novel: "Do Androids dream of electric sheep". In one of the (from the year 2010) street scenes there was a giant Atari neon sign hanging. I always hoped that atari would survive until 2010 in that way there would be one thing that is true to the 2010 setting of the movie.

;)
DXR_13KE 21st November 2007, 20:29 Quote
crap..... i really like them... thats what you get for loosing the money train....
LeMaltor 22nd November 2007, 13:47 Quote
TDU was awful, they deserve this.
(RFFN)-SqUeD 26th November 2007, 10:43 Quote
TDU wasn't aweful, i think it was a great game i had alot of fun with it. BUT....... The supoort was **** up damn if they would just give beter support i wouldn't be dissapointed :|in atari.

The are/were a legacy but if you don't support your own games what will become of them, it isn't good anyway

Grtz
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