The Atari 2600 video game console from Atari's better days.
(Credit: Wikimedia Commons)
The U.S. operations of pioneering game maker Atari has filed for bankruptcy protection with the intention of separating from its unprofitable French parent.
Together with affiliates Atari Interactive, Humongous, and California US Holdings, Atari requested joint administration in U.S. Bankruptcy Court filing yesterday in an effort to raise independent funding to develop mobile games.
The filing comes a month after the French parent announced it was strapped for cash. The company, which has not been profitable since 1999, forecast in December that it would record a "significant loss" (PDF) for the 2012-2013 fiscal year and was examining new avenues for raising investments.
"The Chapter 11 process constitutes the most strategic option for Atari's U.S. operations, as they look to preserve their inherent value and unlock revenue potential unrealized while under the control of Atari SA (ATA)," the company said in a ... [Read more]
by Steven Musil via CNET
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