Atari's Financial Woes

[Everlost_MI]

Yahoo Finance (http://biz.yahoo.com/) has posted (http://biz.yahoo.com/prnews/060209/nyth183.html?.v=19) Atari's press release regarding their 2006 third quarter and nine-month financial results. The release is pretty bleak and it appears that some employees are already jumping ship. The first being Diane Baker who has effective shortly resigned her position as the Executive Vice President and CFO to pursue a new opportunity.

Here are some of the figures from the article...

Net loss for the fiscal 2006 third quarter was $4.8 million, or $0.04 per share, compared to net income of $19.6 million, or $0.16 per share, in the year earlier period...Net loss for the nine-month period was $62.8 million, or $0.50 per share, compared to net income of $14.8 million, or $0.12 per share, in the year- earlier period.

The Company has been advised by HSBC Business Credit (USA) Inc. that it is in default on certain covenants under its revolving credit facility and that HSBC will not currently extend further credit. As of February 9, the Company had no balance outstanding under the credit facility. HSBC also stated that it may agree to review revised business plans or projections and make or not make future advances under the facility. The uncertainties caused by these conditions raise substantial doubt about the Company's ability to continue as a going concern.
So this could put the following planned 2006 and 2007 releases in jeopardy.

Atari's product lineup for the remainder of fiscal 2006 is expected to include the following new releases:

Desperados 2: Cooper's Revenge (PC), Dragon Ball Z: Shin Budokai (PSP), Driver: Parallel Lines (PS2 and Xbox), Dungeons & Dragons Online (PC), Kao the Kangaroo Round 2 (PS2, Xbox, GC and PC), Kao Challengers (PSP), Marc Ecko's Getting Up: Contents Under Pressure (PS2, Xbox and PC) andTycoon City: New York (PC), among others.

Atari's product lineup for fiscal 2007 is expected to include the following new releases:

Alone in the Dark: Near Death Investigation (Xbox 360 and PC), Battlezone (PSP), Neverwinter Nights 2 (PC), Stuntman 2 (Xbox 360), Test Drive Unlimited (Xbox 360, PC), TimeShift (Xbox 360 and PC), among others, including titles from the Dragon Ball Z franchise.
Thanks to Gamecloud (http://www.gamecloud.com/) for the tip. (http://www.gamecloud.com/article.php?article_id=3430)

Ouch...

[Evil Avatar]

They have a few decent titles announced for 2007, but their 2006 lineup seems pretty bleak.

[Kamalot]

Neverwinter Nights 2 would be a shame to vaporize.

[stmfuller]

I"m going to go ahead and say that Atari is done for.

[nonchalance]

Holy fuck.

I wonder who'll buy the D&D license if Atari go under?

[Abash Alarmist]

Does Atari own the rights to the NWN name, or are they just publishing it? because if Bioware owns the name and rights, any competent publisher would pick it up in a heart beat.

[nonchalance]

Atari own the video game rights to everything D&D, Rogue.
So NWN might be Bioware's, but they can't do shit with it without Atari.

[Acleacius]

Pretty sure, NWN is a Bioware property as Baldurs Gate.

Isn't this standard off year fiancals for a Publisher?
Sure maybe bad planning but The End of Atari, they made 100 on an off year?

Not to mention NWN 2 could ship late 2006, the 2007 could be a estimated date of release.

[Bushido]

If atari went back toBasics (http://www.thealmightyguru.com/Reviews/YarsRevenge/) maybe rename some old games exploit previous success there would be no problem.

[Citizen Philip]

Atari is a publisher, I would imagine that to keep afloat it would sell off (if possible) the rights to publish some of their upcoming titles (or perhaps handing over IP rights to previous titles) in exchange for some green, since money is going to be a commodity for them. And it also appears they have no outstanding balance.. which is good.

Either way it is interesting

I believe NWN2 is being developed by Obsidian Entertainment and I guess it's being published by Atari? Maybe Atari has the rights to make D&D games, and Bioware pays?

[Derella]

Well isn't Atari owned by Hasbro, which owns WotC, which owns D&D? That's the whole reason Atari has the publishing writes to all things D&D, isn't it?

But yeah, NWN2 is being developed by Obsidian Entertainment, not Bioware. And it is scheduled for release in Spring 2006.

[drakkarim]

what was said ealier, i don't think any intelligent company would let a cashcow like nwn2 rot. they'll either sell the rights or find some way to get the game out, hopefully however they won't do a last minute rush job (like is prevelant practice in the industry).

[fitbabits]

I heard news of this on Marketplace (NPR show - I love me some NPR) this morning on my way to work. I had a feeling it was coming, but not quite so soon. Still, I don't think that Atari's parent company (Infogrames) will let the brand die. I smell massive layoffs and corporate restructuring (and maybe even a trip to Hawaii).

[mulligan]

Test Drive Unlimited (Xbox 360, PC)


Is that a Typo or is it really comming for PC?

[Reanimated]

They have a few decent titles announced for 2007, but their 2006 lineup seems pretty bleak.



Exactly what I was going to say. Test Drive Unlimited could be a hit if they deliver on the gameplay. NWN2 is a guaranteed hit.

They have a lot of potentially lucrative IP, but they don't seem to put any of it to good use.

[PacerDawn]

Eeek, not Desperados 2??? I loved Desperados, I would pick up the sequel in a heartbeat. It was fun, and it actually worked out of the box without having to patch the CD check security out of it, something rare for a modern Atari title. Crap.

[S1n1star]

I would LOVE to see Atari lose the D&D license and have to sell it to say...Elevation Partners? Then we could keep ALL of their games under the watchful eyes of Drs. Muzyka and Zeschuk while avoiding travesties like the malformed Turbine abortion about to be visited upon us.

[somegameguy]

Well Drakkarim, no, I don't think and intelligent company would let NWN2 rot...but this is Atari. They let the Dragonball cash cow (regardless what you think of it...it sells) rot.

[Demo_Boy]

I looked at all their 2006 titles and was like bleh

then i looked at the 2007 titles and was like -- those are gr8 titles.

wait a sec test drive unlimite is 2007????

[fitbabits]

wait a sec test drive unlimite is 2007????
Fiscal Year 2007 - the release date has not changed.

[Rifter]

So, anyone have a link, or information on Battlezone PSP?

[Oddmaker]

A couple of games MAY save them from death.

[mister_slim]

I imagine they'll make a little cash off of Dragonball, and Driver, and maybe Getting Up, so they'll probably be okay for now.
I looked at all their 2006 titles and was like bleh

then i looked at the 2007 titles and was like -- those are gr8 titles.

wait a sec test drive unlimite is 2007????
Basically, after March 2006 is fiscal year 2007 for Atari.