Atari stops game production

Unless you count the Atari 2600’s recent induction into the National Toy Hall of Fame, things haven’t been great for Atari lately. They recently reported a first quarter 2007 loss of $11.9 million, and there were some concerns about the company’s future. Now, CEO David Pierce has resigned, and now Atari is officially exiting the game production business.

Next-gen says that Atari will now focus on North American game publishing and distribution, completely withdrawing from production. The company is currently looking for a CEO replacement, and workforce cuts are planned.

From Atari’s statement:

“Atari has agreed in principle with IESA to terminate its Production Services Agreement in the near future. As a result, Atari will no longer provide production and quality assurances services to IESA. Rather, Atari plans to transfer certain employees and contract other staff on a project basis for a limited period of time.”