Amidst concerns about its inability to run a viable business, Atari has decided to bow out of videogame production to concentrate its efforts on publishing and distribution in North America.
Atari will be terminating its Production Services Agreement with IESA in the near future. Although an effort will be made to transfer some employees and contract others on a project basis for a limited period of time, Atari is planning to reduce its current work force “in order to re-align the Company’s cost structure with its on-going business base.”
Atari CEO David Pierce has announced his resignation. Curtis G. Solsvig III, Chief Restructuring Officer, has been appointed interim CEO and will assume Pierce’s responsibilities until a new CEO is found.
“We appreciate David’s support and commitment through a difficult period in the Company’s history and wish him well in his future endeavors.” said Gene Davis, Chairman of the Board of Directors.
In an effort to transfuse life into the failing company, Atari has licensed its Test Drive franchise to Infogrames under a six-year agreement that provides for a $5 million advance royalty. Atari said it “will assure the continued vitality of the franchise and will strengthen the relationship between Atari and its parent company while providing an important element in the on-going financial restructuring of Atari.”
“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,” concluded Curtis G. Solsvig III.
via Game Daily
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