Atari Sales Drop In First Half, Losses Slim

Revenues for Atari were down for the first half of its fiscal year, but losses slimmed as the company aims to sell "fewer but more profitable games" as it transitions to online business models. France-headquartered Atari has been placing more emphasis on online business models such as subscriptions, digital downloads and free-to-play as it reduces boxed product sales. Sales for the first half ended September 30 were €29.6 million ($40.8 million), down 58 percent year-on-year but in line with corporate expectations. Losses slimmed to €9.2 million ($12.7 million) from a loss of €27 million ($37.2 million) a year ago, also meeting expectations. The company publishes games from its internal Cryptic Studios such as Champions Online and Star Trek Online. During the half, Atari also released a remake of Haunted House on Wii, Xbox Live Arcade and PC, and Blade Kitten for Xbox Live Arcade, PlayStation Network and PC. During the half, Atari also launched Play Atari, an online social game platform, and Atari GO, the branding for an initiative to develop and publish new online social and casual games. Despite lessening losses, Atari adjusted its guidance for the the second half of the year, projecting current operating income to be "slightly negative to break-even" during the period. Previously, the company expected to report "considerable improvement" in operating income. Atari blamed a market that was "softer than we anticipated." Upcoming Atari-published titles include The UnderGarden, Asteroids Online, Test Drive Unlimited 2, The Witcher 2 and Neverwinter, along with "numerous casual and social online game releases based upon Atari’s classic videogame brands."