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Atari was incorporated in June of 1972, Nolan Bushnell and partner Ted
Dabney formed the company for $1,000. Then they started hiring
engineers. Pong was programmed largely on the strengths of Al Alcorn,
Bushnell and company began production of these units in a converted
skating rink. They conditioned Pong to run on a single chip and when
prices came down, were able to afford the manufacturing costs to sneak
into the home market. Once their marketing deal with Sears was secured
in the Sporting Goods department, Atari quickly became a household
name.
In 1978 Warner purchased Atari from Bushnell, for approximately $35
Million. They formed the "two Ataris" a coin-op exclusive division and
the home console division. In 1982 they were riding high and posting
record profits. Then the software plague reached critical mass in
1983-84, and the market came to its knees. Atari was then sold to Jack
Tramiel in the early-mid nineties.
Poor management and a total misunderstanding of the marketplace, and
botched product launches pretty much doomed them from there. In 1999
the tramiels bailed out to JTS corporation, selling the once proud
company for only a few million dollars.
JTS didn't hold the property long, flipping it to Hasbro for a small
profit several months later.
Atari, for all intents and purposes died when it was "acquired" by JTS.
There was no more innovation at that point and anyone who had ever
worked at Sunnyvale or answered a phone for the old bosses ceased to be
affiliated with the company. It existed as intellectual property, and
was valuable in name recognition only.
Hasbro software engineers released "remakes" of Pong, Centipede,
Missile Command, etc. in the "spirit" of these old games, but only in
the interest of making a profit off an established brand. Atari was
theres, because they simply paid for the trademarks. After dismal
sales and flagging interest, the brand was sold again to Infogrammes, a
french software developer.
In 2003, Infogrammes changed their name to "Atari" because legally they
could. To their credit, IG has produced some fresh titles under the
Atari brand, but they are starting to lose money like the bona-fide
Atari did in the mid-eighties. Investors are getting a bit spooked and
the CEO of "Atari" resigned last month. Their company is in decline
and doing its best to "emulate" the old Wall Street Atari of old.
It is important to note, however, that Atari exists merely as a brand
property of a different company altogether, and may change hands again.
The group of minds that created the games we love and remember are
largely retired or on other projects and are not affiliated with Atari
in any way.
Atari today is like General Motors if it were consumed whole be Toyota,
who began manufacturing the "classic" Studebaker on Japanese soil, from
cast molding and fibreglass. Meaning, it ain't what she used to be.
Anybody that claims Atari is alive and well is misguided or
misinformed. It's nice to see the name out there, but it exists for
the wrong reasons. Merely as a bright, blinking neon sign, begging you
to buy a ticket to the peep-show.
The days of Atari are now reserved for the museum and fond reflection.
Interestingly, Nolan Bushnell announced this month that his U-Wink
"game machines" are going to be incorporated into hip "bistros" in an
attempt to merge cuisine with the videogame, without animatronic rats.
That might be closer to the Atari vibe than InfoGrammes will ever get.
Jeff
/money.cnn.com/2005/06/16/commentary/game_over/column_gaming/index.htm?cnn=yes
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