Atari had a $11.9 million loss last quarter

8 November 2007

Posted by:Ferry

All is not well at Atari, who filed its already delayed Q1 financial report that showed a $11.9 million loss! That’s 50% more loss than the same period last year. The company was already barely staying afloat despite $13 million in loans earlier this year.

Atari was recently served with a notice to terminate its Dragon Ball Z license by FUNimation, and previously sold its rights to the Stuntman and Driver franchises, not to mention just about every other franchise back in 2006 (also to stave off bankruptcy). So while Dragon Ball Z: Budokai Tenkaichi 3 will be released next week, next year Atari might not be publishing Dragon Ball Z: Budokai Tenkaichi 4.

Atari didn’t hold a conference call for first quarter results, but did hold a shareholders meeting today. In its quarterly report, Atari stated that it had “substantial doubt about our ability to continue as a going concern,” quotes Gamesindustry.

Personally I wish Infogrames, who after buying the Atari name assumed its identity, had released more unique games in the past, instead of cancelling titles like Outcast II: The Lost Paradise. Hopefully titles like Godzilla Unleashed (2007) and Alone in the Dark (early 2008) and all the DBZ games will sell enough to keep them from going under. But honestly, with a net loss of $70 million in the 2006-2007 fiscal year alone, it’s not looking likely.