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ATARI Ceases Game Development
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Posted by Donster on: 2007-11-14 19:01:57 496
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Amidst concerns about the company's lack of funds and ability to continue its business, Atari officials announced today that the publisher will "re-focus its operations on publishing and distribution in North America, completing its withdrawal from the production business."
According to the release, Atari's operations going forward "will involve title acquisition, sales and marketing, and physical distribution of products from [Infogrames] IESA, its 51% shareholder, and other selected partners."
Atari has agreed in principle to terminate its Production Services Agreement with IESA in the near future. The company is planning to transfer certain employees and contract other staff on a project basis for a limited period of time. Unfortunately for Atari's employees, this restructuring initiative will also reduce the company's current workforce "in order to re-align the Company's cost structure with its on-going business base."
Along with the withdrawal from production, Atari CEO David Pierce has also announced his resignation. Curtis G. Solsvig III, Chief Restructuring Officer, has been appointed interim CEO and will assume Pierce's responsibilities for now. Atari said that an executive search for a new CEO has already been started.
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News Source: Email
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