View source for Atari Corporation

{{Short description|Former American manufacturer of home game consoles and home computers}}{{For|information on the Atari brand and its history|Atari}}{{More citations needed|date=November 2019}} {{Use American English|date=November 2019}}

{{Use mdy dates|date=November 2019}}{{Infobox company
| name        = Atari Corporation
| logo        = Atari logo alt.svg
| logo_size   = 175
| former_name = Tramel Technology, Ltd.
| type        = [[Privately held company|Private]]
| industry    = {{Unbulleted list|[[Home computer]]|[[Video game industry|Video games]]}}
| fate        = Merged into [[The Walt Disney Company]];<ref name="atariDisneymerger"/> assets later acquired by [[Disney Interactive]]<ref name="ataritohasbro"/>
| predecessor = [[Atari, Inc.]]
| successor   = [[Atari Interactive]]
| founded     = {{Start date and age|1984|05|17}}
| founder     = [[Jack Tramiel]]
| defunct     = {{End date and age|1996|07|30}}<ref name="EGM102"/>
| hq_location_city = [[Sunnyvale, California|Sunnyvale]], [[California]]
| hq_location_country = [[United States|U.S.]]
| key_people  = {{Unbulleted list|[[Jack Tramiel]] (CEO)|Sam Tramiel (President)}}
| products    = {{Unbulleted list|[[Atari ST]]|[[Atari 7800]]|[[Atari Portfolio]]|[[Atari Lynx]]|[[Atari Jaguar]]}}
}}'''Atari Corporation''' was an American manufacturer of computers and video game consoles. It was founded by [[Jack Tramiel]] on May 17, 1984, as '''Tramel Technology, Ltd.''', but then took on the [[Atari]] name less than two months later when [[WarnerMedia|Warner Communications]] sold the home computing and game console assets of [[Atari, Inc.]] to Tramiel.<ref name="GPro92">{{cite magazine |title=The Life and Death of Atari |magazine=[[GamePro]] |issue=92 |publisher=[[International Data Group|IDG]]|date=May 1996|page=20}}</ref> Its chief products were the [[Atari ST]], [[Atari 8-bit family#XE series|Atari XE]], [[Atari 7800]], [[Atari Lynx]] and [[Atari Jaguar]].

The company [[Reverse takeover|reverse merged]] with [[JT Storage|JTS Inc.]] in 1996,<ref name="atariJTSmerger">{{cite web |url=http://contracts.onecle.com/atari/jt.mer.1996.04.08.shtml |title=Atari and JT Storage Reorganisation Plan |publisher=One Cle |access-date=November 25, 2006 |archive-url=https://web.archive.org/web/20061209123854/http://contracts.onecle.com/atari/jt.mer.1996.04.08.shtml |archive-date=December 9, 2006 |url-status=dead}}</ref> becoming a small division which itself closed after JTS sold all Atari assets to [[Hasbro Interactive]] in 1998.<ref name="ataritohasbro">{{cite web |url=https://www.gamespot.com/articles/atari-goes-to-hasbro/1100-2462915/ |title=Atari Goes to Hasbro |last=Johnston |first=Chris |date=April 8, 2000 |website=GameSpot}}</ref>
==History==
The company was founded by [[Commodore International]]'s founder Jack Tramiel soon after his resignation from Commodore in January 1984. Initially named Tramel Technology, Ltd., the company's goal was to design and sell a next-generation home computer. On July 1, 1984, TTL bought the Consumer Division assets of Atari, Inc. from Warner, and TTL was renamed Atari Corporation.<ref name="GPro92" /> Warner sold the division for $240 million in stocks under the new company.

In order to halt the massive losses Atari, Inc. had been yielding under Warner's ownership, Tramiel shut down nearly all of their 80 domestic branches, laying off the staff and liquidating the inventory.<ref name="NGen24">{{cite magazine |last=Thomas |first=Don |title=Atari's Historic Road to Nowhere |magazine=[[Next Generation (magazine)|Next Generation]] |issue=24 |publisher=[[Imagine Media]] |date=December 1996 |pages=97–104}}</ref> Under Tramiel's ownership, Atari used the remaining stock of game console inventory to keep the company afloat while they finished the development of their 16-bit computer system, the [[Atari ST]]. In 1985, they released their update to the 8-bit computer line—the Atari XE series—as well as the 16-bit [[Atari ST]] line. Then in 1986, Atari Corp. launched two consoles designed when Atari was under Warner's control: Atari 2600 Jr and [[Atari 7800]] (which had a limited release in 1984). Atari Corp. rebounded, producing a $25 million profit for 1986.<ref name="GPro92" /> The Atari ST line proved very successful (mostly in Europe, not the U.S.<ref name="NGen24" />), ultimately selling more than 5 million units. Its built-in [[MIDI]] ports made it especially popular among musicians. Still, its closest competitor in the marketplace, the [[Commodore Amiga]], outsold it 3 to 2.<ref>{{Cite book |last=Wolf |first=Mark J. P. |url=https://books.google.com/books?id=XiM0ntMybNwC&q=Commodore+Amiga%2C+outsold+it+3+to+2&pg=PA60 |title=The Video Game Explosion: A History from PONG to Playstation and Beyond|date=2008|publisher=ABC-CLIO|isbn=978-0-313-33868-7|language=en}}</ref> Atari eventually released a line of inexpensive [[IBM PC compatible]]s as well as an MS-DOS compatible palm computer called the [[Atari Portfolio]].

Atari, under Tramiel, had a poor reputation in the marketplace. In 1986 a columnist for Atari magazine ''[[ANALOG Computing]]'' warned that company executives seemed to emulate Tramiel's {{"'}}penny-pinching' [and] hard-nosed bargaining, sometimes at the risk of everything else," resulting in poor customer service and documentation, and product release dates that were "perhaps not the entire truth ... Pretty soon, you don't believe anything they say." He concluded, "I think Atari Corp. had better start considering how they're perceived by the non-Atari-using public."<ref name="leyenberger198602">{{cite news | url=https://archive.org/stream/analog-computing-magazine-39/Analog_Computing_39_1986-02_Fifth_Anniversay_and_CES#page/n117/mode/2up | title=The End User | work=ANALOG Computing | date=February 1986 | access-date=24 June 2014 | last=Leyenberger | first=Arthur | pages=109&ndash;110}}</ref> The company, however, was much more open to the press than its predecessor Atari Inc., which had refused to let ''[[Antic (magazine)|Antic]]'' preview forthcoming announcements and even opposed the magazine printing the word "Atari" on its issues.<ref name="friedland198703">{{cite news | url=https://archive.org/stream/1987-03-anticmagazine/Antic_Vol_5-11_1987-03_Inside_Atari_Corp#page/n29/mode/2up | title=Today's Atari Corp. {{!}} A close-up look inside | work=Antic | date=March 1987 | access-date=4 July 2014 | pages=30&ndash;33 | last=Friedland | first=Nat}}</ref>

On August 23, 1987, Atari agreed to purchase the [[Federated Group]] for $67.3 million. October 4, 1987, Atari completed the acquisition and gained full control of its own retail stores. In the final quarter of 1987, Federated lost $6.4 million in day-to-day operations. A post-acquisition audit ended on February 15, 1988, and identified $43 million in adjustments to Federated's balance sheet, far more than Atari anticipated. The net worth of its acquisition was reduced by $33 million. Atari's CFO later claimed that they would never have done the deal had they known at the time.<ref>{{cite web |url=http://articles.latimes.com/1987-08-24/business/fi-2005_1_atari |title=Atari to Acquire Federated Group for $67.3 Million: Deal Would Give Video Pioneer Access to a Retail Network |first=Nancy |last=Yoshihara |date=24 August 1987|via=LA Times}}</ref><ref>{{cite web |url=https://law.resource.org/pub/us/case/reporter/F2/970/970.F2d.641.91-15693.91-15668.html |title=970 F.2d 641 |website=law.resource.org}}</ref><ref>{{cite web |url=https://www.atariarchives.org/atarileaks/Atari%201987%20Annual%20Report.pdf |title=1987 Annual report |website=www.atariarchives.org }}</ref> Federated's operational losses increased, reaching $67 million for its first full year under Atari in 1988.<ref name="annual1988">{{cite web|url=https://www.atariarchives.org/atarileaks/Atari%201988%20Annual%20Report.pdf |title=1988 Annual report |website=www.atariarchives.org }}</ref> The FBI began an investigation of Atari in May of that same year for an ongoing scheme involving the profitable import and resale of Japanese DRAM chips in the US, "in violation of U.S. import laws and contrary to import agreements."<ref>{{Cite web |url=http://www.atarileaks.org/index.html|archive-url=https://web.archive.org/web/20130501002118/http://www.atarileaks.org/index.html |url-status=dead|archive-date=2013-05-01|title=AtariLeaks |date=2013-05-01 |access-date=2018-09-30}}</ref> In March 1989, Atari announced that it would treat Federated as a discontinued operation and took an additional one-time charge of $57 million.<ref>{{cite web |url=http://articles.latimes.com/1989-03-10/business/fi-1144_1_federated-group |title=Ailing Unit Blamed for $85-Million Loss: Atari Puts Federated on the Block |first=CARLA |last=LAZZARESCHI |date=10 March 1989 |via=LA Times}}</ref> Federated was eventually sold to [[Silo (store)|Silo]] in 1989.<ref>{{cite news |url=https://www.nytimes.com/1989/11/11/business/company-news-atari-is-selling-26-federated-stores.html |title=COMPANY NEWS; Atari Is Selling 26 Federated Stores |last=AP }}</ref>

In 1988, [[Stewart Alsop II]] said that Atari was among several companies that "have already been knocked out" of the GUI market by [[Apple Inc.|Apple]], [[IBM]]/[[Microsoft]], and others,<ref name="alsop19880118">{{Cite journal |last=Alsop |first=Stewart II |date=1988-01-18 |title=WUI: The War Over User Interface |url=http://vintagecomputer.net/cisc367/PC-Letter_19880118.pdf |journal=P.C. Letter |volume=4 |issue=2 |pages=1–4}}</ref> but Atari's sales hit their peak that year, at $452 million.<ref name="annual1988" /><ref name="GPro92" />

In 1989, Atari released the [[Atari Lynx|Lynx]], a handheld console with color graphics, to critical acclaim. However, a shortage of parts kept the system from being released nationwide for the 1989 Christmas season; the Lynx lost market share to [[Nintendo]]'s [[Game Boy]], which had only a monochrome display, but a much better battery life, and was widely available.

As the fortunes of Atari's computers faded, video games again became the company's main focus. In 1993, Atari released its last console, the [[Atari Jaguar|Jaguar]].<ref name="GPro92" /> One of the first entries in the [[Fifth generation of video game consoles|fifth generation of game consoles]], the Jaguar was marketed as the world's first [[64-bit computing|64-bit]] console. However, due to a games library which was low in both quantity and quality, as well as being extremely difficult to program games for the system because of its multi-chip architecture, it was unable to compete effectively against [[Fourth generation of video game consoles|the incumbent fourth generation consoles]];<ref>{{cite magazine |title=Which Game System is the Best!? |magazine=[[Next Generation (magazine)|Next Generation]] |issue=12 |publisher=[[Imagine Media]] |date=December 1995 |pages=36–85}}</ref><ref>{{cite web |last=Langshaw |first=Mark |title=Atari Retrospective: The Rise and Fall of a Gaming Giant |url=http://www.digitalspy.co.uk/gaming/news/a453849/atari-retrospective-the-rise-and-fall-of-a-gaming-giant.html |website=Digital Spy |access-date=13 April 2017 |date=January 27, 2013}}</ref> the [[Sega Saturn]] and [[PlayStation (console)|Sony PlayStation]] would outsell the Jaguar in very large numbers late in its lifespan.

Atari sustained a net loss of $49.6 million for 1995, with $27.7 million in losses during the last quarter of the year alone.<ref>{{cite magazine|title=New Systems, New Price Cuts|magazine=[[GamePro]] |issue=93 |publisher=[[International Data Group|IDG]]|date=June 1996|page=16}}</ref>
===Decline and Aftermath===
In December 1995, Sam Tramiel suffered a mild heart attack, forcing him to step down as Atari's president, causing Jack Tramiel to come back and lead the company again. On January 2, 1996, at the Winter [[Consumer Electronics Show]], Atari Corporation formally announced the formation of [[Atari Interactive#Division of Atari Corporation|Atari Interactive]] to "address the worldwide PC market".<ref name="AICreation">{{cite web|website = Compkarori.com |title = Atari Broadens its Platform Base|publisher = [[Business Wire]]|date = January 2, 1996 |url =http://compkarori.com/jaguar/hoff4.txt|access-date = 2009-08-15 |archive-url=https://web.archive.org/web/20160303172957/http://compkarori.com/jaguar/hoff4.txt |archive-date=March 3, 2016}}</ref> Planning to initially launch with four titles, ''[[Tempest 2000]]'', ''[[Highlander: The Last of the MacLeods]]'', ''[[Baldies]]'', and ''[[FlipOut!]]'', further releases would include ''[[Missile Command 3D]]'', ''Return to Crystal Castles'', ''[[Rocky Interactive Horror Show]]'', and ''Virtual War''.<ref name="AICreation" /> <ref name="SanJose">{{cite web|last = Biggs|first = Brooke Shelby|title = 'Success' killed Pac-Man creator Atari
|publisher = [[San Jose Business Journal]]|date = July 19, 1996|url =http://www.bizjournals.com/sanjose/stories/1996/07/22/story3.html?jst=s_cn_hl|access-date = 2009-08-15}}</ref><ref>{{cite web|website = Compkarori.com |title = Atari Broadens its Platform Base |publisher = [[Business Wire]] |date = January 2, 1996 |url =http://compkarori.com/jaguar/hoff4.txt|access-date = 2009-08-15 |archive-url=https://web.archive.org/web/20160303172957/http://compkarori.com/jaguar/hoff4.txt |archive-date=March 3, 2016}}</ref><ref>{{cite web|last = Shelton|first = Denise|title = Atari announces PC games unit.|publisher = [[cNet]]
|date = January 3, 1996|url =http://news.cnet.com/Atari-announces-PC-games-unit/2100-1023_3-201192.html|access-date = 2009-08-15 }}</ref><ref name="moby">[http://www.mobygames.com/game/dos/tempest-2000/cover-art/gameCoverId,1540/ Tempest 2000 CD cover at Moby Games]</ref>

However, by February 1996, a series of successful lawsuits followed by profitable investments had left Atari with millions of dollars in the bank but, due to the Jaguar's commercial failure, no new products to sell at all; in addition, the Tramiel family wanted themselves out of business. On February 13, 1996, Atari agreed to merge with [[JT Storage|JTS Inc.]], a short-lived maker of hard disk drives, in a [[reverse takeover]] to form '''JTS Corporation'''.<ref name="GPro92" /><ref name="atariJTSmerger" /> The reverse merger was completed on July 30, 1996.<ref name="EGM102">{{cite magazine |title=Video Game Timeline |magazine=[[Electronic Gaming Monthly]] |issue=102 |publisher=[[Ziff Davis]] |date=January 1998 |page=137}}</ref> Atari's role in the new company largely became a holder for most of its properties. Most of Atari's staff members were either dismissed or resigned, and its Atari Interactive division was quickly shut down,<ref>{{cite magazine|title=Adios, Atari |magazine=[[GamePro]] |issue=92 |publisher=[[International Data Group|IDG]]|date=May 1996|page=20|quote=... the recently formed PC division, Atari Interactive, has been completely liquidated.}}</ref> with the remainder of its employees being relocated to JTS's headquarters.<ref name="SanJose" /><ref name="NGen24" /> Consequently, the Atari name almost vanished from the consumer market.

On March 13, 1998, JTS Corporation sold the Atari name and assets to [[Hasbro Interactive]] for $5 million,<ref name="ataritohasbro" /> less than a fifth of what Warner Communications had paid 22 years earlier. The transaction primarily involved the [[brand]] and [[intellectual property]] rights which would then fall under [[Atari Interactive#Hasbro Interactive|Hasbro's Atari Interactive division]].{{efn|On May 14, 1999, Hasbro Interactive released all rights on the Atari Jaguar into the [[public domain]], allowing anyone to freely create and publish software without the need of a license from them.<ref>{{cite web |url=http://www.atariage.com/Jaguar/archives/HasbroRights.html |title=Hasbro Releases Jaguar Publishing Rights |publisher=Hasbro Interactive |access-date=May 14, 2008 |quote=Beverly, MA (May 14, 1999) – Leading entertainment software publisher, Hasbro Interactive announced today it has released all rights that it may have to the vintage Atari hardware platform, the Jaguar.}}</ref> Many homebrew titles, as well as some unfinished games, were released for the Jaguar since then.}} JTS Corporation itself would file for [[Chapter 11, Title 11, United States Code|Chapter 11 bankruptcy protection]] in December 1998, a filing which would ultimately be converted into [[Chapter 7, Title 11, United States Code|Chapter 7 liquidation]] by the courts in January 1999.

On January 29, 2001, Hasbro Interactive, along with Atari Interactive, was sold to [[Atari SA|Infogrames]],<ref name="IGNBuyout">{{cite web |url=http://pc.ign.com/news/28701.html |title=Infogrames to Acquire Hasbro Interactive |date=December 6, 2000 |website=[[IGN]] |archive-url=https://web.archive.org/web/20011119190727/http://pc.ign.com/news/28701.html |archive-date=November 19, 2001 |url-status=dead |access-date=September 30, 2019}}</ref> renaming itself Infogrames Interactive and then took on its current name in 2003 after its merger with the Hasbro-established Atari Interactive; the present day [[Atari Interactive#Infogrames subsidiary|Atari Interactive]], through Atari SA, continues to hold and license all Atari trademarks as well as producing many new games, some based on Atari's original properties, to this day.
==List of products==
[[File:Atari 1040STf.jpg|thumb|Atari ST]][[File:Atari-7800-Console-Set.jpg|thumb|Atari 7800]][[File:Atari-Portfolio-Computer.png|thumb|Atari Portfolio]][[File:Atari-Jaguar-Console-Set.jpg|thumb|Atari Jaguar]]
*[[Atari ST]] (1985)
**[[Atari STacy]] (1989)
**[[Atari TT030]] (1990)
**[[Atari MEGA STE]] (1991)
**[[ST BOOK]] (1991)
**[[Atari Falcon]] (1992)
*[[Atari 8-bit family#XE series|Atari XE series]] (1985)
**[[Atari XEGS]] (1987)
*[[Atari 7800]] (1986)
*"[[Atari 2600#Atari 2600 Jr.|Atari 2600 Jr.]]" (1986)
*[[Atari Transputer Workstation]] (1989)
*[[Atari Portfolio]] (1989)
*[[Atari Lynx]] (1989)
*[[Atari Panther]] (cancelled)
*[[Atari Jaguar]] (1993)
**[[Atari Jaguar CD]] (1995)
==Notes==
{{notelist}}
==References==
{{Reflist}}
==External links==
{{Commons|Atari}}
*[http://mcurrent.name/atarihistory/tramel_technology.html A History of Tramel Technology / Atari by Michael D. Current]
*[https://archive.today/20120722141847/http://www.atarimuseum.com/ The Atari History Museum] – Atari historical archive site
*[http://www.atariage.com/ AtariAge.com]
*[http://www.atarihq.com/ Atari Gaming Headquarters] – Atari historical archive site
{{Authority control}}