Out of credits, Atari files for Chapter 11 bankruptcy protection

out of credits atari files for chapter 11 bankruptcy protection

Atari is the Lynard Skynard of video game companies, a group with a recognizable name that started in the 1970s, but whose modern incarnation bears little to resemblance to the original. The company has merged with and been sold to other companies so frequently over the last forty years, that it’s hard to keep up. In almost every case, Atari has joined with other companies in order to survive rather than grow. Most recently, Atari parent game publisher Infogrames changed the name of its entire operation to the old brand, part of a consolidation movement after a decade of massive losses. It’s over, though. Atari will now be sold off to yet another band that will take up the mantle, as Atari Inc. has declared bankruptcy.

Atari Inc., the video game-developer and Western publisher subsidiary of Atari SA, filed for Chapter 11 reorganization with US Bankruptcy Court in New York on Sunday according to a report in The Los Angeles Times. Atari has actually been recovering since consolidating four years ago, releasing mobile games based on its most recognized properties like Pong and licensing out its iconic corporate logo for clothing and other products. The company’s survival, however, was reliant on a UK financial company called BlueBay Assets. Atari’s $28 million credit facility with BlueBay lapsed in December, leaving it with almost no cash, and crippling its ability to release new products.

Atari SA will now look for something to either buy Atari Inc. in full, or look for a buyer for its myriad classic gaming properties like Asteroids, Defender, and others. Even now, Greatest Hits compilations as well as plug-in-and-play Atari machines are reliable sellers. The logo also, as previously mentioned, has quite a bit of value. According to the Times report, Atari relied on logo licensing for 17 percent of its revenue.

From the beginning, the foundational video game company started by Nolan Bushnell has been plagued by bad business decisions and worse luck. Starting with Warner Communications’ (today known as Time Warner) acquisition of Atari in 1976, the Atari name gave the video game industry its first boom before all but collapsing it in the United States by 1983. Since then, Atari’s gone through various shapes. It survived as a console maker until the mid-90s, putting out failed machines like the portable Lynx and Nintendo 64 competitor Jaguar, before it was acquired by Hasbro. Infogrames purchased the company in 2000, and, despite publishing some decent titles in the decade since like Ghostbusters: The Video Game, it has been little more than a money sink.

Emerging Tech

Michigan’s former transportation chief has some advice for wannabe smart cities

After 31 years as Michigan’s transportation director, Kirk Steudle has seen it all, particularly with smart city projects. He spoke with Digital Trends recently about what makes smart cities work, and offers advice along the way.

Original ‘Diablo’ developer calls out Blizzard for disrespecting its employees

In a Twitch rant, an original creator of Diablo has said that Blizzard is more interested in caring for its shareholders and the elite one percent of the company than looking after its workers.

For the first time ever, PlayStation will be a no-show at E3

For the first time in the event's history, E3 2019 will not feature Sony or PlayStation. The massive event almost always features a lengthy press conference from Sony, often after all other major companies give theirs.

Is your PC slow? Here's how to restore Windows 10 to factory settings

Computers rarely work as well after they've accumulated files and misconfigured settings. Thankfully, with this guide, you'll be able to restore your PC to its original state by learning how to factory reset Windows.

‘Blockchain gaming’ startup gets $16 million in Series A funding

A gaming startup, Mythical Games, has raised $16 million in Series A funding to work on their concept of blockchain gaming. The aim is for the startup to develop games for the PC, console, and mobile markets.

‘Fortnite’ named Ultimate Game of the Year at the Golden Joystick awards

This year's Golden Joysticks, the gaming awards handed out by GamesRadar, have been announced and Fortnite has been named the Ultimate Game of the Year. It beat out Red Dead Redemption for best game, but Red Dead was named critics' choice.
Emerging Tech

Awesome Tech You Can’t Buy Yet: A.I. selfie drones, ‘invisible’ wireless chargers

Check out our roundup of the best new crowdfunding projects and product announcements that hit the web this week. You may not be able to buy this stuff yet, but it sure is fun to gawk!

Want to gift a Steam game so you can play with a friend? Here's how to do it

The holidays may have passed, but it's always a good time to give the gift of gaming (especially when there's a Steam sale)! Here's our quick guide on how to give a Steam game as a gift.

‘Final Fantasy XIV: Shadowbringers’ to launch next summer with gunblades, Viera

Square Enix revealed that Final Fantasy XIV: Shadowbringers will be released in summer 2019. The third expansion of the MMORPG will include new story content, dungeons, and raids, in addition to gunblades and the Viera.

The Fix PUBG campaign is over: What’s next for ‘PlayerUnknown’s Battlegrounds’?

The PlayerUnknown's Battlegrounds development team declared that the Fix PUBG campaign was over. Here are the results of the three-month campaign, as well as the future plans for the multiplayer Battle Royale shooter.

Cyber Monday 2018: When it takes place and where to find the best deals

Cyber Monday is still a ways off, but it's never too early to start planning ahead. With so many different deals to choose from during one of the biggest shopping holidays of the year, going in with a little know-how makes all the…

Get an Xbox One S or PlayStation 4 for just $200 at GameStop starting Sunday

GameStop is currently running an early Black Friday sale that offers an Xbox One S or a PlayStation 4 slim model for just $200 apiece. Both consoles come with a free game, and other games are also on sale.

These are the coolest games you can play on your Google Chrome browser right now

Not only is Google Chrome a fantastic web browser, it's also a versatile gaming platform that you can access from just about anywhere. Here are a few of our favorite titles for the platform.

PlayStation 5 release date in 2020 confirmed? PSVR 2 also on the way

A Redditor who correctly claimed that Sony will be skipping E3 2019 revealed several details about the PlayStation 5 and the PSVR 2. The PlayStation 5 release date will be in 2020, while the PSVR 2 will ditch the breaker box.