Infogrames prepares for Atari disposal
by Alan Rose 
{ May 30th 2006 at 12:00PM }
Last week, a developer from the Neverwinter Nights community discussed some of the financial difficulties Atari is currently experiencing. MSNBC is now confirming that French publisher Infogrames, who has a controlling interest in Atari, is attempting to restructure its failing business, which could have a substantial impact on some of the year's most anticipated games.Atari had recently cut prices on all current gen games, but more drastic actions are in store. Infogrames may sell the publishing rights to upcoming titles Neverwinter Nights 2 and Timeshift (both due in September), and is also considering potential buy-outs of its other subsidiary studios, including Shiny Entertainment (Matrix: Path of Neo, Earthworm Jim). A potential merger with rival French games maker Ubisoft has even been speculated, although Infogrames founder and executive chairman Bruno Bonnell has dismissed this rumor as premature.
Bonnell's recent discussions with Elevation Partners have lead some industry analysts to believe that Atari's Dungeons & Dragons license might find its way back to BioWare, but this could just be wishful thinking. Let us know if you think the Atari brand should be put out to pasture at this point, or if it just needs more capable management.
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Reader Comments (Page 1 of 1)
The1 @ May 30th 2006 12:11PM
Atari needs good management to streamline all their different development studios under one roof to save money. Furthermore, they only need to develop A1 quality games that people will enjoy.
Ryan @ May 30th 2006 12:16PM
What a shame that Atari/Infogrames absorbed 2 of the most innovative game companies of the 90s and let them go to waste.
Humongous Entertainment was the brainchild of Ron Gilbert (creator of Maniac Mansion, Monkey Island 1 and 2) and did brilliant point-and-click adventure games for kids (Putt Putt, Freddi Fish, Pajama Sam, etc.)
Shiny Entertainment, before it was repurposed as a Matrix franchise factory, was responsible for Earthworm Jim and the fantastic MDK games.
Humongous was shut down altogether in 2005 and Shiny is up for sale.
Kokernutz @ May 30th 2006 12:39PM
Atari should go back to super simple 2600-esque games for the Wii.
PodMonkeys @ May 30th 2006 1:23PM
Man, I sure hope the Atari name doesn't go away. A world without Atari, would be a sad one indeed. Or maybe thats just my nostalgia for the 80's talking. :P Going back to simple fun games would be good, I think. Maybe a portable along the lines of a 2600 a smidge bigger than a Gameboy Micro. I'd pick one up if it came out.
Jeff @ May 30th 2006 1:53PM
"Man, I sure hope the Atari name doesn't go away. A world without Atari, would be a sad one indeed."
The world existed without Atari for several years in the mid 90's, and nothing much bad happened.
Really, though, since 1984, the name has just been dragged through the mud by pretty much all of its suitors. It's amazing to me that it still has any cachet at all - that's a testament to the original company's popularity and goodwill. But Warner and then the Tramiels were just the first nails in the Atari coffin. Then JTS, Hasbro and now Infogrames are only the latest. The Nolan Bushnell Atari really only existed for a few years in the 1970's, and that's the Atari that people still know and love.
It's kinda like how Apple survived all those years after Wozniak and then Jobs left, but it was a shell of its former self. I would love to see Nolan Bushnell swoop in and buy the Atari name back; at this point, he's probably worth more than Atari is.
MewMewtwo45 @ May 30th 2006 2:57PM
You know, I (and probably many of you) heard rumors on the internets about Nintendo perhaps looking into snatching up Atari. I think they would be smart to do so. Then suddenly, you have lots of Atari games available to download on Wii...
PhoenixJ @ May 30th 2006 5:46PM
I have heard no such rumors, though that does sound like a good idea (not expecting it to happen)
Elraidia @ May 30th 2006 6:27PM
Atari does not have a reputation of good faith or community building as far as I'm concerned. The release of ToEE (and other games) without support - leaving us with a game that was great in concept, but essentially broken does not leave me with warm and fuzzy thoughts for Atari.
As far as I'm concerned, it would be a great move to get Atari away from Neverwinter Nights 2 (my main concern since we're building a PW for that game). I hope it happens, and a better publisher comes in line.
Kalia @ May 30th 2006 8:10PM
The basis for your article is a Dow Jones Inc. article dated May 11, 2006:
"05/11 18:32 DJ UK PRESS: Infogrames Mulls More Disposals,Atari Delisting
DOW JONES NEWSWIRES
Infogrames Entertainment SA executive chairman Bruno Bonnell said his company is considering further asset sales as well as a deal with its rival, Ubisoft Entertainment SA , as it continues to restructure its business, the Financial Times reported on its Web site Thursday.
"The disposals aren't over," Bonnell said at the E 3 games fair in Los Angeles. "There will be others." On Wednesday, Infogrames said it is selling intellectual properties for EUR 20 million - with Timeshift being sold to Vivendi-Universal's (V) games division and Games.com going to Time Warner Inc.'s (TWX) America Online.
However, while declaring speculation of Infogrames merging with Ubisoft "premature," Bonnell said the two French video game publishers, "could do plenty of things together, even if we haven't yet spoken." He added that Ubisoft could also bid to acquire one or more of Infogrames' games development studios, the FT reported.
Bonnell acknowledged that talks had been held with Elevation Partners, a U.S. private equity firm whose partners include rock star Bono. But he said Elevation's proposals were "not compatible with our vision."
Infogrames was also considering delisting troubled U.S. video game company Atari Inc. (ATAR), in which it holds a 51% stake, Bonnell said, according to the FT.
"One of the options would be to refocus the activities of each company on its core business," Bonnell was quoted as saying. "Atari could become the development studio for the American market whilst Infogrames would be the international publisher."
Dow Jones Newswires 05 -11 -06 1832ET Copyright (c) 2006 Dow Jones & Company, Inc."
A three week old story is hardly a good basis or indicator for holding one's breath regarding a change in publishers at this point.
darko82 @ May 30th 2006 8:37PM
Hey Kalia,
It's news to me, but then again, I don't read Dow Jones newswire, so I guess that makes you "special". ;)
Nothing has been announed yet officially regarding publisher swapping, so chill out.
Kalia @ May 30th 2006 11:15PM
It's been "news" since May 11th when it was released to any number of news sites. I happened to research the source so please, keep your less-than-pithy comments to yourself.
Regardless, there is also an article in this month's Game Informer with Infogrames Bruno Bonnell indicating that Atari's not in quite the financial straits everyone assumes they are. *shrugs* But he would say that, wouldn't he? Given that their stock is at 63cents a share, they're darned close to life support. They have until August 30th to maintain 10 days of $1.00/share in their stocks before being delisted. By the time the financial mess is cleaned up, NWN 2 will be out. Even if Atari tanks and goes into Chapter 11 or 13 bankruptcy, the licensing can be sold off. Obsidian is an independent developer and will be able to, if asked, continue support with a new publishing house.