Atari is in a spot of hassle, and has signalled it could want further money to proceed.
Reporting its half yr outcomes to thirtieth September 2022, the Paris-based firm admitted any delays within the improvement of its 4 actions (gaming, {hardware}, licensing and blockchain), or underperformance in its initiatives might trigger it to make much less cash than anticipated, and in flip spark “a liquidity shortfall and extra financing necessities”.
There’s an “unsure macro-environment” for video video games and blockchain, the latter of which Atari has gone in closely on, and so the corporate reckons really implementing its new technique “might require extra funding assets”.
Choices outlined embody new loans with its major shareholder Irata, an organization managed by present Atari chairman and chief govt officer Wade Rosen, and/or elevating new financing from elsewhere, which can embody a “public providing… to satisfy capital wants and refinance the Firm’s debt”.
All of it appears like robust instances for Atari, which is in fact a special firm now than it was in its glory days. The Atari of now could be concerned within the likes of Web3, NFTs and the blockchain on prime of licensing and {hardware} manufacturing.
These initiatives are struggling for achievement. For the primary half of the monetary yr ending September, Atari income was €4.3m, down 27 % from the €6m it generated the identical interval final yr.
Atari stated this was largely right down to the failure of its {hardware} enterprise and the controversial VCS console, which suffered heavy delays earlier than lastly launching final yr. In isolation, {hardware} enterprise income plummeted 92 % from €2.3m to simply €200,000.
Video games income, nonetheless, was up 10 % off the again of RollerCoaster Tycoon and new video games within the Recharged sequence. Licensing revenues decreased by 18 %, and blockchain revenues (NFT gross sales) elevated from the low base of €400,000 to €700,000.
All advised, Atari made a internet lack of €5.4m, up from the €3.5m loss it made throughout the identical interval final yr.
Atari is soldiering on, and in a press release issued to Tom’s {Hardware} insisted it “stays dedicated to the VCS platform”.
In April, Atari killed its ATRI token and Atari Chain initiatives. On the time, Atari stated it will examine creating a brand new token as a part in its blockchain roadmap, however even this sounds prefer it’s not occurring – or whether it is, it is not occurring any time quickly.
“This venture nonetheless stays at an early stage of its improvement as Atari intends to completely think about the varied structuring choices out there and regulatory framework, in addition to present uncertainty across the blockchain market surroundings, with a purpose to make this venture related for its neighborhood of followers and companions,” Atari stated.
In the meantime, Atari is sitting on 972 “parcels of land” within the Sandbox metaverse. This make-believe actual property is not doing something for the corporate and it will not do for no less than the subsequent 12 months.
Atari stated in its gloomy outlook that it is too early to count on its “turnaround technique” to have a big affect on income and profitability.
“In a difficult macro-environment for video video games and blockchain initiatives, Atari intends to proceed specializing in executing its roadmap and reworking its operations throughout all 4 strains of enterprise,” the corporate insisted.
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