Atari Saved! Video Game Icon Snapped Up For $11 Million
Now Infogrames, Atari’s majority shareholder and the owner of the "Unreal" series, says its buying the rest of Atari for $11 million. They've also agreed to float Atari a $20 million loan to cover day-to-day operations until the deal is finalized.
Atari isn't the only game publisher in trouble. Even a popular franchise like "Tomb Raider" wasn't enough to keep SCi from seeking a lifeline from Time Warner (TWX) and a wealthy English investor last week.
Atari is the maker of the first modern video game console, but it was pushed out of that business in the early 90s. Its last console was the Atari Jaguar, released in 1993. Rumor is Infogrames may take the Atari name, but then the question is, does the Atari name still have any cachet with gamers?
See Also:
Lara Croft Saved? SCi Raising $119M From Time Warner, Others (TWX)
Lara Croft On Life Support? SCi Interactive Needs A Buyer
It's a bit misleading to call this "Atari"- the original Atari died in (pick one) 1984, when Warner Communications sold it off to Jack Tramiel, who radically changed the business or 1996, when that Atari was wiped out in a merger with JTS... since then the brand has been passed around in a circle, but there's pretty much nothing else of the old Atari.
The first Atari game Pong was tested at a bar called Andy Capps on El Camino Real in Sunnyvale. Rumor had it that the game broke when quarters were overstuffed into the coin slot. A bunch of us - programmer and hardware types - hung out there and when we saw this Pong game I seem to recall the only discussion we had was how it was done. Once we satisfied ourselves that we knew - that was it, end of discussion. Not one of us saw the potential. Back we went to our beer and shuffle board.
I started a computer magazine called Antic - named after the graphics chip in the first Atari 800 computer.
At that time Atari owned the computer console gaming business but like Xerox couldn't figure out how to hold on to the franchise that it (arguably) built single handedly.
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