Atari has today released a statement announcing the company will be focusing more on premium PC and console games rather than free-to-play mobile games. The new plan has been approved by its Board of Directors earlier this month after the company conducted a review of its gaming division’s “assets and opportunities.”
Atari’s statement on the future of its games development.
“Atari intends to shift its video game portfolio to premium games for consoles and PC. While the competitive and marketing environment is weighing on the free-to-play business model, five free-to-play games will be discontinued or sold (RCT Stories, Crystal Castles, Castles & Catapults, Ninja Golf, Atari Combat: Tank Fury). Successful games with a loyal user base are not affected. In the area of premium games, Atari intends to leverage its catalog of 200 proprietary games to build a strong pipeline of premium games on all platforms. The first titles are currently in development and the first releases are planned for the financial year 2021/22. This offering will progressively strengthen the content offered on the Atari VCS, whose commercial rollout is ramping up (see press release of June 8, 2021).
In order to efficiently allocate its resources to the success of this new strategy, Atari has decided to exit its direct operations of Atari Casino in Africa. With respect to the TV show business, the Group has taken the decision to focus on licensing agreements and consequently to write down the assets corresponding to TV shows previously produced by Atari. As we approach the closing of the financial statements for the financial year 2020/21, the global review of games and non-core activities resulting from the implementation of the new strategy will generate an impairment of approximately EUR 5 million. As such, Atari is withdrawing its positive net result guidance for the financial year 2020/21. Excluding the accounting impact of these impairments linked to the change in strategy, consolidated net income for 2020/21 would have been positive, as anticipated in the press release of April 6, 2021. The annual results for the financial year 2020/21 will be published by July 31, 2021 at the latest.”
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