Grim times for Atari
Infogrames Entertainment's troubled US games unit, Atari sold their Stuntman and Driver franchises, they're on the verge of losing the Dragon Ball Z series, they posted a $70 million loss in the last fiscal year and they recently borrowed $10 million loan from Infogrames shareholder Bluebay Asset Management. It's grim times indeed for the troubled publisher and it's not been made any better by the news that they've just reported a net loss for the quarter ending June 30, 2007 of $11.9 million.Net revenue for the first quarter ended June 30, 2007, was $10.4 million versus $19.5 million in the comparable year-earlier period. Publishing net revenue was $9.7 million, versus $9.8 million in the prior year, while distribution revenue was $0.7 million, versus $9.7 million in the comparable year-earlier period.
What now for the company then? Well, in the report Atari has expressed their concern and have stated that they have "substantial doubt" about their ability to continue. Sad news indeed for a company that was a pioneer of the videogame console.
