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[[Image:Atari 1040STf.jpg|left|thumb|280px|Atari ST]]
[[Image:Atari 1040STf.jpg|left|thumb|280px|Atari ST]]


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.<ref name="nintendosuit">{{Citation
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 April of 1985, they released the first update to the 8-bit computer line - the Atari 65XE, the [[Atari XE]] series. In June of 1985 saw the release of the Atari 130XE and Atari User Group's received early sneak-preview samples of the new Atari 520ST's and major retailer shipments hit store shelves in September of 1985 of Atari's new 16-bit [[Atari ST]] computers. 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.<ref name="nintendosuit">{{Citation
| title = Nintendo Is Sued by Atari
| title = Nintendo Is Sued by Atari
| newspaper = [[New York Times]]
| newspaper = [[New York Times]]

Revision as of 15:01, 8 February 2009

For other uses, see the corporate brand.
Atari
IndustryConsumer electronics, video game
Founded1972 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)
Productsvideo games, consumer electronics

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).[1]

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..[2]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.[3][4] In 1996, Atari Corporation reverse merged with disk drive manufacturer JT Storage (JTS),[5] becoming a division within the company.

Atari Interactive started as a subsidiary of Hasbro Interactive[6], after Hasbro Interactive acquired all Atari Corporation related properties from JTS in 1998.[7]IESA in turn acquired Hasbro Interactive in 2001, and proceeded to rename it to Infogrames Interactive. [8] In 2003, IESA then changed the company name entirely to Atari Interactive.[1]

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.[9] 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.[10]. On October 11th, 2008, Infogrames completed its acquisition of Atari, Inc., making it a wholly owned subsidiary. [11]

History

Atari Inc. (1972-1984)

Main article: Atari, Inc

In 1971, Nolan Bushnell and Ted Dabney founded an engineering firm, Syzygy Engineering,[12] that designed and built the first arcade video game - Computer Space for Nutting Associates. On June 27, 1972 Atari, Inc. was incorporated and soon hired Al Alcorn as their first design engineer. Bushnell decided to have Alcorn produce as a test of his abilities, an arcade version of the Magnavox Odyssey's Tennis game,[13] which would be named Pong. While Bushnell incorporate Atari in June of 1972, Syzygy Company was never formally incorporated. Before Atari's official incorporation, 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.[14]

The third version of the Atari Video Computer System sold from 1980 to 1981

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 1976, Bushnell, through a Grass Valley, CA. engineering firm - Cyan Engineering, 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 "2600: The Hacker Quarterly," 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 [15] 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)

Main article: Atari Corporation
Atari ST

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 April of 1985, they released the first update to the 8-bit computer line - the Atari 65XE, the Atari XE series. In June of 1985 saw the release of the Atari 130XE and Atari User Group's received early sneak-preview samples of the new Atari 520ST's and major retailer shipments hit store shelves in September of 1985 of Atari's new 16-bit Atari ST computers. 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.[16] Atari eventually lost the case when it was rejected by a US district court in 1992.[17]

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 lawsuits[18] 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.[19] 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)

Main article: Atari Interactive

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)

Main article: Atari, Inc (Infogrames)

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.[20]

On April 30, 2008, Atari Inc. announced its intentions to accept Infogrames' buyout offer and to merge with Infogrames.[21]

On October 11, 2008, Infogrames completed its acquisition of Atari Inc., making it a wholly owned subsidiary.[11]

On December 9, 2008, Atari announced that it had acquired Cryptic Studios, a MMORPG developer. [22]

See also

Wikimedia Commons has media related to Atari.

References

  1. ^ a b Atari Inc. (2003-03-31). "10-KT · For 3/31/03". Atari Inc. Retrieved 2007-11-06.
  2. ^ Current, Michael D. (2004–2007). "A Brief Timeline of the Atari Divisions Initially Retained by Warner Communications, July 1984 to Present". Retrieved 2007-11-06.{{cite web}}: CS1 maint: date format (link)
  3. ^ Sanger, David E. (1984-07-03), "Warner Sells Atari To Tramiel", New York Times, pp. Late City Final Edition, Section D, Page 1, Column 6
  4. ^ Atari Corp. (1994-03-29). "Amendment to General Statement of Beneficial Ownership - Schedule 13D". Atari Inc. Retrieved 2008-02-02.
  5. ^ Bloomberg Business NEws (1996-02-14), "Atari Agrees To Merge With Disk-Drive Maker", New York Times, p. 1 {{citation}}: |last= has generic name (help)
  6. ^ "Hasbro Interactive Pursues Copyright Infringement Suit". Hasbro Interactive. 2000-02-08. Retrieved 2007-11-06.
  7. ^ "FORM 8-K Filing for transfer of assets to Hasbro Interactive from JTS". Securities And Exchange Commission. 1998-02-23. Retrieved 2007-11-06.
  8. ^ "Civilization III:Play The World Press Release". Infogrames Inc. 2002-05-08. Retrieved 2007-11-06.
  9. ^ "Infogrames Entertainment Corporate Profile and Annual Report" (PDF). Infogrames Entertainment SA. Fiscal Year 2005-2006. p. 7. Retrieved 2007-11-06. {{cite web}}: Check date values in: |date= (help)
  10. ^ Atari Inc. (2003-03-31). "10-KT · For 3/31/03, Overview Subsection". Atari Inc. Retrieved 2007-11-06.
  11. ^ a b http://www.gamesindustry.biz/articles/infogrames-completes-atari-inc-acquisition
  12. ^ Vendel, Curt. "ATARI Coin-Op/Arcade Systems 1970 - 1974". Retrieved 2008-05-18.
  13. ^ http://www.ralphbaer.com/video_game_history.htm
  14. ^ California Secretary of State - California Business Search - Corporation Search Results
  15. ^ Sanger, David E. (July 3rd), "Warner Sells Atari To Tramiel", New York Times, pp. Late City Final Edition, Section D, Page 1, Column 6, 1115 words {{citation}}: Check date values in: |date= and |year= / |date= mismatch (help)
  16. ^ "Nintendo Is Sued by Atari", New York Times, February 2nd {{citation}}: Check date values in: |date= and |year= / |date= mismatch (help)
  17. ^ "COMPANY NEWS; Nintendo Suit by Atari Is Dismissed", New York Times, May 16th {{citation}}: Check date values in: |date= and |year= / |date= mismatch (help)
  18. ^ Atari Inc. (1995-06-05). "DEF 14A · For 6/5/95". Atari Inc. Retrieved 2008-05-18.
  19. ^ Sample Contracts - Agreement and Plan of Reorganization - Atari Corp. and JT Storage Inc. - Competitive Intelligence for Investors
  20. ^ Atari, Inc. Reports Receipt of Non-Binding Offer from Infogrames Entertainment S.A.: Financial News - Yahoo! Finance
  21. ^ Infogrames Entertainment S.A. and Atari, Inc. Announce Agreement to Merge: Financial News - Yahoo! Finance
  22. ^ Atari acquires Cryptic Studios


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