Video game maker Atari Inc. today announced the implementation of its latest corporate action plan, a drastic cost-control measure that will dispose of non-core assets and reduce the company’s worldwide workforce by a whopping 20%. In addition to issuing pink slips to employees, the company will be saying goodbye to weaker-selling franchises and relying more on external development studios.
“Today’s decisive action will provide us with the flexibility necessary in a changing business environment,” says Atari chairman and CEO Bruno Bonnell. ‘Adjusting our cost structure is a significant first step and demonstrates our commitment to restoring shareholder value.”
Atari’s library of more than 1,000 titles includes such hit franchises as DRIVER, The Matrix, Stuntman and Test Drive, as well as children’s properties such as Dragon Ball Z and Nickelodeon’s Blue’s Clues and Dora the Explorer. Atari Inc. is a majority-owned subsidiary of France-based Infogrames Entertainment SA, the largest interactive games publisher in Europe. More information on the company can be found at www.atari.com.
All game companies have been feeling the pinch of slumping games sales is recent months. Gamers are apparently turning a cold shoulder to current platform titles as they await the arrival of next-generation titles to accompany Microsoft’s new Xbox 360 and the upcoming PlayStation 3 and Revolution consoles from Sony and Nintendo, respectively. Electronic Arts and Activision are among the other major players cutting costs by dropping the axe on employees. Each is laying off between 5% and 6% of their workforce to weather the slow sales period.
Leave a Reply