US Atari restructuring complete

Following a prolonged period of turmoil in North America, the restructuring of the relationship between classic games label Atari and parent company Infogrames is complete, bringing with it a complete overhaul of US operations and relationships.

Atari will now handle the distribution of Infogrames products in North America for the next three years, though this might be reduced to two if the company fails to meet expectations in this capacity. The deal sees Atari retaining 30 per cent of the net receipts from this business.

Infogrames, on the other hand, will be handling the distribution of Atari’s titles outside of North America.

In addition to these terms, Atari has licensed back its name and trademark to Infogrames in North America so the French firm can handle a ‘global online initiative’ concerning the Atari brand.

The deal effectively terminates all existing service contracts between the two firms. Over the next seven to ten months Atari will continue to provide certain administrative functions to Infogrames, though Infogrames will no longer provide any management services to Atari. As part of the deal a number of North American Atari employees are expected to move over to Infogrames.