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Atari starts sinking
Company News - posted by Vault Dweller on Fri 10 February 2006, 13:02:05Tags: Atari
GameCloud reports that Atari is in big financial troubles:
This press release from Atari announces that the game publisher could be in serious financial trouble following their Oct-Dec. 2005 financial results. Net income for the time period was $100.8 million, down from $156.4 million for the same period a year ago. Atari suffered a net loss of $4.8 million compared to a profit of $19.6 million for the same period a year ago. The statement read that product delays along with a soft overall video game market contributed to the loss. Also Atari revealed that it had defaulted on loans from the HSBC Business Credit and that the company was not planning on extending Atari furthur credit. Finally the press release revealed that Atari's chief financial officer Diane Baker effective shortly had resigned "to pursue a new opportunity". As a result, Atari admitted, "The uncertainties caused by these conditions raise substantial doubt about the Company's ability to continue as a going concern." However, the company did say that it will be taking measures to secure its financials, which might include hiring a new credit company, the sale of some of its IP rights and more closures of its development studios.It's nice to see that Atari's decision to kill all DnD RPGs and focus on DnD Online & Dragonshard is working out for them.
Spotted at: RPG Dot