Atari closes Eden Games, looks to mobile future

May 11, 2012 | 11:08

Tags: #console-gaming #financial #job-losses #layoffs #pc-gaming #test-drive-unlimited

Companies: #atari

Atari has officially closed the doors of development subsidiary Eden Games, following the report of a massive decrease in revenue.

In the company's latest financial filings, Atari admitted that revenue for the financial year hit just $51.3 million compared to $77.8 million in the previous year. While losses were slashed from $8m in financial year 2011 to $4.8 million this year, thanks to cost-cutting measures and the dropping of selected subsidiary business units, things are still clearly tough at the troubled company.

Things aren't as tough for Atari as they are for subsidiary Eden Games, however: the development house's parent company has decided to formally close its doors and sell off its assets.

Eden Games is the developer behind Atari's flawed reboot of the Alone in the Dark franchise and the Test Drive Unlimited series of open-world drive-'em-ups, which while technically impressive disappointed with bad acting, a poor script and a lack of attention to detail in its latest incarnation. The first game in the series sold well, but its sequel did not - giving Atari cause to sack the majority of the company's staff last year.

Despite running on a skeleton crew, Eden Games has been limping along - but its time has finally come to an end. All operations have officially ceased, with Atari seeking a buyer for the studio's assets.

The company has announced that it has sold off its share of GameOne, a French TV channel which airs competitive gaming alongside anime and other geek clichés, for $7.6 million - without which its financial report would make for serious sombre reading.

To reassure investors that it has things under control, Atari has announced its plans for the coming financial year: a renewed focus on mobile and casual gaming. Following the success of the company's existing mobile titles, including Asteroid Gunner and Atari's Greatest Hits, the company is investing further money in bringing both back-catalogue titles and new IP to smartphones and tablets.

That renewed focus will likely come at a cost to the company's PC and mainstream console efforts, however, with Atari's financial report strangely silent on any plans for those platforms.
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