Atari Gives Up On Game Development; Licenses Off 'Test Drive' IP
Atari To Remain As Publisher/Distributor; Parent Company Licenses IP
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Just as one company rises from the dead another returns to its developmental grave as Atari has announced that it has bowed out of the production end of the game industry. The company announced at the same time that CEO David Pierce has stepped down due to the company's failings.
Atari will now focus on "title acquisition, sales and marketing, and physical distribution of products from IESA [fancy name for parent company Infogrames], its 51% shareholder, and other selected partners." Their first step in getting out of the development business was to license the Test Drive IP to parent company Infogrames. The new licensing deal will see Infogrames hold the license for six years and allow them to develop and market at least two new titles based on the franchise and most importantly give Atari $5 million in advance.
Acting CEO Curtis G. Solsvig III whom stepped in for Pierce commented, "Atari continues to take important steps to stream-line operations and establish a winning business plan. We expect that the actions we are undertaking today will position us for the future as a preferred business and distribution partner."
Atari will now focus on "title acquisition, sales and marketing, and physical distribution of products from IESA [fancy name for parent company Infogrames], its 51% shareholder, and other selected partners." Their first step in getting out of the development business was to license the Test Drive IP to parent company Infogrames. The new licensing deal will see Infogrames hold the license for six years and allow them to develop and market at least two new titles based on the franchise and most importantly give Atari $5 million in advance.
Acting CEO Curtis G. Solsvig III whom stepped in for Pierce commented, "Atari continues to take important steps to stream-line operations and establish a winning business plan. We expect that the actions we are undertaking today will position us for the future as a preferred business and distribution partner."