Atari Unveils New Divisions and Leadership Changes
Atari has announced a significant restructuring, establishing two new divisions: Atari Gaming and Atari Blockchain, along with a shift in its executive leadership. Atari Gaming will handle traditional gaming operations, including the Atari VCS console and licensing activities, while Atari Blockchain will oversee the Atari Token and investigate emerging opportunities in blockchain technology, NFTs, and virtual environments.
Leadership Transition Marks a New Era
Effective April 6, 2021, Wade J. Rosen, who has served as the Chairman of the Board, will step into the role of Chief Executive Officer for Atari Group. Frédéric Chesnais, the current CEO, will concentrate his efforts on Atari Blockchain and licensing initiatives. In a statement, Rosen expressed his gratitude towards Chesnais for stabilizing the company, which had previously been burdened with debt, and for positioning it for a successful future. Rosen credited Chesnais for his strategic push into innovative markets such as blockchain, the Atari VCS, and Atari Hotels, leading to the company’s strongest valuation in seven years.
Chesnais Reflects on His Journey
Chesnais, a major shareholder in Atari, acknowledged his return to the company eight years ago when it seemed near collapse. He expressed pride in the collective efforts that have revitalized the Atari brand and emphasized the importance of teamwork and shareholder support in achieving this turnaround. The establishment of the two divisions, he noted, will enable Atari to adapt more effectively to the evolving landscape of the gaming industry.
Focus on Gaming Division
The newly formed Gaming Division will encompass all assets not allocated to the Blockchain Division, prioritizing the ever-growing retro gaming market. Atari aims to pursue sustainable growth and long-term profitability through three primary focuses: gaming, the Atari VCS, and licensing. The company plans to enhance its free-to-play mobile gaming portfolio while also developing new titles for console and PC, with a particular emphasis on reviving classic Atari franchises for modern audiences.
Atari VCS Support and Community Engagement
Atari is committed to bolstering the Atari VCS by providing significant third-party and exclusive first-party content. The VCS community has demonstrated remarkable creativity in utilizing the platform, and Atari plans to support this by offering tools that empower creators to develop their own classic games, starting with titles from the Atari 2600 era. The ultimate goal is to facilitate the creation, sharing, and enjoyment of retro gaming content in a contemporary context.
Leveraging Licensing Opportunities
Atari’s extensive catalog of classic games remains a significant asset, and the company intends to capitalize on its brand recognition across both gaming and non-gaming sectors, such as hotels and casinos. Recently, Atari has successfully ventured into licensing its brands for NFT applications, and expects this area to play an increasingly prominent role in its licensing strategy in the foreseeable future.
Establishment of Blockchain Division
All blockchain-related operations will be consolidated into the new Atari Blockchain division, which aims to explore the vast potentials of cryptocurrency and blockchain-based gaming. With the launch of the Atari Token, the division’s primary objective is to enhance the token’s functionality by integrating it within the Atari ecosystem, allowing it to be used for purchasing digital goods in the VCS and other games on blockchain platforms. Additionally, Atari is actively seeking opportunities in blockchain gaming, NFTs, and online environments.
Future Structure and Financial Goals
The creation of the Blockchain Division is set to take effect on April 1, 2021. Atari is considering the possibility of structuring this division as a separate entity, which could eventually lead to a spin-off for shareholders through a public listing. However, any such developments will require thorough business analysis, regulatory approvals, and shareholder consent, with an anticipated timeline of at least 12 months for completion. Despite delays in licensing and VCS launches due to the global pandemic, Atari aims to achieve a positive net income for the financial year 2020-2021.
Disclaimer on Future Plans
Atari cautions that the realization of its plans, including the operational budget and financing strategy, is subject to uncertainties that could affect their realization and overall value.
About Atari
Atari, consisting of Atari SA and its subsidiaries, is a global leader in interactive entertainment and multiplatform licensing. Founded in 1972, the company has a rich portfolio of over 200 games and franchises, including iconic titles such as Asteroids®, Centipede®, Missile Command®, and Pong®. Atari delivers engaging online gaming experiences across smartphones, tablets, and connected devices and develops interactive entertainment for major gaming consoles. The company also extends its brand through licensing agreements across various media and product categories.
