Atari

Infobox Company
company_name=Atari
company_logo=
foundation=1972 as Atari Inc.
1984 as Atari Corporation and Atari Games
1998 as Atari Interactive (division of Hasbro Interactive)
2003 as Atari Interactive (formerly Infogrames Interactive/Hasbro Interactive)
2003 as Atari Inc. (formerly Infogrames Inc./GT Interactive)
location_country=U.S.
key_people=
industry= Consumer electronics, video game
products= video games, consumer electronics
revenue=

Atari is a corporate and brand name owned by several entities since its inception in 1972. It is currently owned by Atari Interactive, a wholly owned subsidiary of the French publisher Infogrames Entertainment SA (IESA).cite web
last = Atari Inc.
title = 10-KT · For 3/31/03
publisher = Atari Inc.
date = 2003-03-31
url =http://www.secinfo.com/dsvr4.28Z7.htm
format =
doi =
accessdate = 2007-11-06 ] Atari Interactive has in turn licensed the brand name and assets to Atari, Inc. (NASDAQ|ATAR), a 51% majority owned subsidiary of Infogrames Entertainment SA (IESA), encompassing its North American operations.cite web
last = Atari Inc.
title = Form 10-K for ATARI INC, Annual Report
publisher = Atari Inc.
date = 2007-09-18
url =http://biz.yahoo.com/e/070918/atar10-k.html
format =
doi =
accessdate = 2007-11-06 ]

The original Atari Inc. was founded in 1972 by Nolan Bushnell and Ted Dabney. It was a pioneer in arcade games, home video game consoles, and home computers. The company's products, such as "Pong" and the Atari 2600, helped define the computer entertainment industry from the 1970s to the mid 1980s.

In 1984, the original Atari Inc. was split, and the arcade division was turned into Atari Games Inc..cite web
last = Current
first = Michael D.
title = A Brief Timeline of the Atari Divisions Initially Retained by Warner Communications, July 1984 to Present
date = 2004-2007
url =http://mcurrent.name/atariholdings.html
accessdate = 2007-11-06 ] Atari Games received the rights to use the logo and brand name with appended text "Games" on arcade games, as well as rights to the original 1972 - 1984 arcade hardware properties. The Atari Consumer Electronics Division properties were in turn sold to Jack Tramiel's Tramel Technology Ltd., which then renamed itself to Atari Corporation.Citation
last =Sanger
first = David E.
title =Warner Sells Atari To Tramiel
newspaper = New York Times
pages = Late City Final Edition, Section D, Page 1, Column 6
year = 1984
date = July 3rd
url = http://select.nytimes.com/gst/abstract.html?res=F30B10FF395D0C708CDDAE0894DC484D81] cite web
last = Atari Corp.
title = Amendment to General Statement of Beneficial Ownership - Schedule 13D
publisher = Atari Inc.
date = 1994-03-29
url =http://www.secinfo.com/dMESy.bd.htm
format =
doi =
accessdate = 2008-02-02 ] In 1996, Atari Corporation reverse merged with disk drive manufacturer JT Storage (JTS),Citation
last =Bloomberg Business NEws
title =Atari Agrees To Merge With Disk-Drive Maker
newspaper = New York Times
pages = 1
year = 1996
date = February 14
url = http://query.nytimes.com/gst/fullpage.html?res=9A0CE5DB1239F937A25751C0A960958260] becoming a division within the company.

Atari Interactive started as a subsidiary of Hasbro Interactivecite web
title = Hasbro Interactive Pursues Copyright Infringement Suit
publisher = Hasbro Interactive
date = 2000-02-08
url =http://boardgames.about.com/library/news/bl000208a.htm
accessdate = 2007-11-06 ] , after Hasbro Interactive acquired all Atari Corporation related properties from JTS in 1998.cite web
title = FORM 8-K Filing for transfer of assets to Hasbro Interactive from JTS
publisher = Securities And Exchange Commission
date = 1998-02-23
url =http://www.sec.gov/Archives/edgar/data/941167/0001047469-98-009085.txt
accessdate = 2007-11-06 ] IESA in turn acquired Hasbro Interactive in 2001, and proceeded to rename it to Infogrames Interactive. cite web
title = Civilization III:Play The World Press Release
publisher = Infogrames Inc.
date = 2002-05-08
url =http://www.civ3.com/pressrelease.cfm
accessdate = 2007-11-06 ] In 2003, IESA then changed the company name entirely to Atari Interactive.

The company that currently bears the name Atari Inc. was founded in 1993 under the name GT Interactive. IESA acquired a 62% controlling interest in GT Interactive in 1999, and proceeded to rename it Infogrames, Inc.cite web
title = Infogrames Entertainment Corporate Profile and Annual Report
publisher = Infogrames Entertainment SA
date = Fiscal Year 2005-2006
pages = 7
url =http://corporate.infogrames.com/MT-3.34-en/mt-static/FCKeditor/UserFiles/File/DOCDEREF05_06GB.pdf
accessdate = 2007-11-06 ] After IESA's acquirement of Hasbro Interactive and its related Atari properties in 2001, Infogrames, Inc. intermittently published Atari branded titles for Infogrames Interactive. In 2003, Infogrames Inc. licensed the Atari name and logo from Atari Interactive and changed its name to Atari Inc.cite web
last = Atari Inc.
title = 10-KT · For 3/31/03, Overview Subsection
publisher = Atari Inc.
date = 2003-03-31
url =http://www.secinfo.com/dsvr4.28Z7.htm#5ug
format =
doi =
accessdate = 2007-11-06 ] Currently, Atari Inc. develops, publishes and distributes games for all major video game consoles, as well as for the personal computer, and is currently one of the largest third-party publishers of video games in the United States.

History

Atari Inc. (1972-1984)

In 1972, Nolan Bushnell and Ted Dabney founded an engineering firm, Syzygy Engineering,cite web
last = Vendel
first = Curt
title = ATARI Coin-Op/Arcade Systems 1970 - 1974
url=http://www.atarimuseum.com/videogames/arcade/arcade70.html
accessdate = 2008-05-18 ] and soon hired Al Alcorn as their first design engineer. Bushnell decided to have Alcorn produce an arcade version of the Magnavox Odyssey's Tennis game,http://www.ralphbaer.com/video_game_history.htm] which would be named Pong. When they went to incorporate their firm that June, they found Syzygy was already registered in California. Bushnell wrote down several words from the game Go, eventually choosing "atari", a term which in the context of the game means a state where a stone or group of stones is imminently in danger of being taken by one's opponent. In Japanese, "atari" is the nominalized form of "ataru" (verb), meaning "to hit the target" or "to receive something fortuitously". The word 'atari' is used in Japanese when a prediction comes true or when someone wins a lottery. The choice of Atari as a brand name was arguably better than Syzygy for most markets in terms of spelling, pronunciation and potential name recognition. Atari was incorporated in the state of California on June 27th, 1972. [http://kepler.ss.ca.gov/corpdata/ShowAllList?QueryCorpNumber=C0654542 California Secretary of State - California Business Search - Corporation Search Results ] ]

In 1973, Atari secretly spawned a "competitor" called Kee Games, headed by Nolan's next door neighbor Joe Keenan, to circumvent pinball distributors' insistence on exclusive distribution deals; both Atari and Kee could market (virtually) the same game to different distributors, with each getting an "exclusive" deal. Though Kee's relationship to Atari was discovered in 1974, Joe Keenan did such a good job managing the subsidiary that he was promoted to president of Atari that same year.

In 1975, Bushnell started an effort to produce a flexible video game console that was capable of playing all four of Atari's then-current games. The result was the Atari 2600, one of the most successful consoles in history, sometimes called VCS for Video Computer System. Authors on the history of videogames have consistently presented the possibility the 2600 was named after the frequency 2600 hertz used by a blue box to gain control of telephone networks, or "," which began as a magazine for telephone phreaking. Bushnell knew he had another potential hit on his hands, but bringing the machine to market would be extremely expensive. Looking for outside investors, in 1976 Bushnell sold Atari to Warner Communications for an estimated $28 - $32 million, using part of the money to buy the Folgers Mansion. He departed from the division in 1979.

A project to design a successor to the 2600 started as soon as the system shipped. The original development team estimated the 2600 had a lifespan of about three years, and decided to build the most powerful machine they could, given that time frame. Midway into the effort's time-frame, the home computer revolution was taking off, so the new machines were adapted, with the addition of a keyboard and various inputs, to produce the Atari 800, and its smaller cousin, the 400. Although a variety of issues made them less attractive than the Apple II for some users, the new machines had some success when they finally became available in quantity in 1980.

Under Warner, Atari Inc. achieved its greatest success, selling millions of 2600s and computers. At its peak, Atari accounted for a third of Warner's annual income and was the fastest-growing company in the history of the United States at the time. However, Atari Inc. ran into problems in the early 1980s. Its home computer, video game console, and arcade divisions operated independently of one another and rarely cooperated. Faced with fierce competition and price wars in the game console and home computer markets, Atari was never able to duplicate the success of the 2600.

These problems were followed by the infamous video game crash of 1983, with losses that totaled more than $500 million. Warner's stock price slid from $60 to $20, and the company began searching for a buyer for its troubled division.In 1983, Ray Kassar was forced to leave Atari, and executives involved in the Famicom deal were forced to start over again, and the deal eventually died. With Atari's further financial problems and the Famicom's runaway success in Japan after its July 16th, 1983 release date, Nintendo decided to go it alone.

Financial problems continued to mount and Ray's successor, James J. Morgan, had less than a year in which to tackle his predecessor's problems before he, too, left. In July 1984, Warner sold the home computing and game console divisions of Atari to Jack Tramiel for $240 million in stocks Citation
last = Sanger
first = David E.
title = Warner Sells Atari To Tramiel
newspaper = New York Times
pages = Late City Final Edition, Section D, Page 1, Column 6, 1115 words
year = 1984
date = July 3rd
url = http://select.nytimes.com/gst/abstract.html?res=F30B10FF395D0C708CDDAE0894DC484D81&scp=2&sq=atari+tramiel+240&st=nyt] who then used it to create a new company under the name Atari Corporation. Warner retained the arcade division, continuing it under the name Atari Games, but sold it to Namco in 1985. Warner also sold the fledgling Ataritel to Mitsubishi.

Atari Corporation (1984 - 1996)

Under Tramiel's ownership, Atari Corp. used the remaining stock of game console inventory to keep the company afloat while they finished development on a 16-bit computer system, the Atari ST. In 1985, they released an update to the 8-bit computer line, the Atari XE series, as well as the 16-bit Atari ST line. In 1986, Atari launched two consoles designed under Warner - the Atari 2600jr and the Atari 7800 console (which saw limited release in 1984). Atari rebounded, making $25 million profit that year. In 1989, Atari released the Atari Lynx, a handheld console with color graphics, to much fanfare. A shortage of parts kept the system from being released nationwide for the 1989 Christmas season and the Lynx lost market share to Nintendo's Game Boy, which only had a black and white display, but was available. Also in 1989, Atari Corp. sued Nintendo for $250 million, alleging it had an illegal monopoly.Citation
title = Nintendo Is Sued by Atari
newspaper = New York Times
pages =
year = 1989
date = February 2nd
url = http://query.nytimes.com/gst/fullpage.html?res=950DE6DB1439F931A35751C0A96F948260&scp=3&sq=atari%20nintendo%201989&st=cse] Atari eventually lost the case when it was rejected by a US district court in 1992.Citation
title = COMPANY NEWS; Nintendo Suit by Atari Is Dismissed
newspaper = New York Times
pages =
year = 1992
date = May 16th
url = http://query.nytimes.com/gst/fullpage.html?res=9E0CE3DD143EF935A25756C0A964958260&scp=3&sq=atari%20nintendo%20rejected&st=cse]

In 1993, Atari positioned its Jaguar as the only 64-bit interactive media entertainment system available, and sold around 200,000 units (at $250 each) in its first year on the market.

By 1996, a series of successful lawsuitscite web
last = Atari Inc.
title = DEF 14A · For 6/5/95
publisher = Atari Inc.
date = 1995-06-05
url =http://www.secinfo.com/dxF7c.a9.htm
accessdate = 2008-18-05 ] and profitable investmentsFact|date=May 2008 had left Atari with millions of dollars in the bank, but the failure of the Lynx and Jaguar left Atari without a product to sell. Tramiel and his family also wanted out of the business. The result was a rapid succession of changes in ownership. In July 1996, Atari merged with JTS Inc., a short-lived maker of hard disk drives, to form JTS Corp. [http://contracts.onecle.com/atari/jt.mer.1996.04.08.shtml Sample Contracts - Agreement and Plan of Reorganization - Atari Corp. and JT Storage Inc. - Competitive Intelligence for Investors ] ] Atari's role in the new company largely became that of holder for the Atari properties and minor support, and consequently the name largely disappeared from the market.

As a division of Hasbro (1998-2001)

In March 1998, JTS sold the Atari name and assets to Hasbro Interactive for $5 million—less than a fifth of what Warner Communications had paid 22 years earlier. This transaction primarily involved the brand and intellectual property, which now fell under the Atari Interactive division of Hasbro Interactive. The brand name changed hands again in December 2000 when French software publisher Infogrames took over Hasbro Interactive.

Atari Inc., a division of Infogrames (2001 to present)

In October 2001 Infogrames announced that it was "reinventing" the Atari brand with the launch of three new games. On May 7, 2003, Infogrames had its majority-owned, but discrete US subsidiary Infogrames NA officially renamed Atari, Inc., renamed its European operations to Atari Europe but kept the original name of the main company Infogrames Entertainment. The original Atari holdings division purchased from Hasbro, Atari Interactive, was also made a separate corporate entity.

On March 6, 2008, Infogrames made an offer to Atari Inc. to buy out all remaining public shares for a value of $1.68 per share, or $11 million total. The offer would make Infogrames sole owner of Atari Inc., thus making it a privately held company. [http://biz.yahoo.com/prnews/080306/nyth121.html?.v=101 Atari, Inc. Reports Receipt of Non-Binding Offer from Infogrames Entertainment S.A.: Financial News - Yahoo! Finance ] ] .

On April 30, 2008, Atari Inc. announced its intentions to accept Infogrames' buyout offer and to merge with Infogrames. [http://biz.yahoo.com/prnews/080430/nyw164.html?.v=1 Infogrames Entertainment S.A. and Atari, Inc. Announce Agreement to Merge: Financial News - Yahoo! Finance ] ] .

ee also

*History of video game companies
*Golden Age of Video Arcade Games
* Atari Democrat

References

External links

* [http://www.atari.com/ Atari brand's official global site]
* [http://www.atarimuseum.com The Atari History Museum] - Atari historical archive site.
* [http://www.ataritimes.com/ Atari Times] , supporting all Atari consoles.
* [http://www.atariage.com/ AtariAge.com]
* [http://www.mobygames.com/company/atari-inc Atari] entry at MobyGames
* [http://www.atarihq.com Atari Gaming Headquarters] - Atari historical archive site.
* [http://www.ataritimes.com/article.php?showarticle=70 Atari On Film] - List of Atari products in films.
* [http://www.thedoteaters.com/ The Dot Eaters: classic video game history] - Comprehensive history of videogames, extensive info on Atari offerings and history