One of the most iconic video games companies of all time has filed for Chapter 11 bankruptcy. Atari, Atari Interactive and two other companies owned by Atari SA, the French parent company of Atari, filed a petition for Chapter 11 protection with the U.S. Bankruptcy Court for the Southern District of New York.
The filing is designed to lay the groundwork for Atari’s US operations to emerge from bankruptcy protection as an independent company. Atari U.S. said in a statement that the new company is seeking to secure independent capital in order to continue to continue operation and growth.
As a pioneer of video games, specifically video game consoles, Atari began its adventures in 1972, and soon became well known for its gaming consoles as well as video games (e.g., Asteroids, Centipede). As competition increased, and the likes of Nintendo and Sony entered the market, Atari left the console market to concentrate on game development for a variety of platforms, including those of its former rivals, Microsoft, Sony, and Nintendo.
It’s always sad to see such pioneering companies fall on hard times, but hopefully this process will help Atari emerge stronger and more successful in the long term.