Atari Files for Bankruptcy
Atari's inception was in 1972. Since then, it has been owned by several companies such as Hasbro. In 1977, Atari was introduced in the United States by its French-based parent company. The electronic-game makers soon after launched iconic games such as Centipede, Pong, Pacman and Asteroids. Atari was very popular, especially among children, although many adults were intrigued by the games. Because of its industrial design, it continued as a pioneer in arcade games, home video games and home computers.
The popular video-game console, finally named the Atari 2600, was released in October 1977. It was credited with using a microprocessor-based hardware system and ROM cartridges for the first time. Game machines by others used non-microprocessor hardware.
The game-playing public was impressed by its plug-in modules. Instead of the product loading all the games it had into memory, the Atari 2600 was able to create more powerful gaming with its modules. Atari is now focusing on gaming for items such as smartphones and tablets. Despite its gaming success in the seventies and eighties, Atari was not able to hold its place in the market and suffered financially.
Over the years, the once-highly successful company financially struggled and suffered loss along the way. In 2008, Nasdaq dropped the company because it did not maintain a minimal market value. In 2013, Atari's U.S. operations, and two of its related companies, filed for Chapter 11 Bankruptcy as a strategic plan to separate itself from its parent French company Atari SA (ASA). Atari SA forecasts that by December it would suffer a significant loss for the 2012-2013 fiscal period.
The Bankruptcy protection would allow Atari to realize its inherent value while releasing its revenue potential. The company expects to go about its normal operations during this process. The filing comes one month after Atari SA announced its financial fall. It has not been profitable since 1999.Continued on the next page