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Atari, Inc. is an American video gaming company based in New York City, and a subsidiary of the Atari SA holding company. It is the main entity serving the commercial Atari brand globally since 2003. The company currently publishes games based on retro Atari franchises as well as some new content, and also produces the new Atari 2600+ console. In the past it produced titles including Neverwinter Nights, Driver 3, Fahrenheit, RollerCoaster Tycoon 3 and Test Drive Unlimited.
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Atari, Inc. is an American video gaming company based in New York City, and a subsidiary of the Atari SA holding company. It is the main entity serving the commercial Atari brand globally since 2003. The company currently publishes games based on retro Atari franchises as well as some new content, and also produces the new Atari 2600+ console. In the past it produced titles including Neverwinter Nights, Driver 3, Fahrenheit, RollerCoaster Tycoon 3 and Test Drive Unlimited.
Atari, Inc. is an American video gaming company based in New York City, and a subsidiary of the Atari SA holding company. It is the main entity serving the commercial Atari brand globally since 2003. The company currently publishes games based on retro Atari franchises as well as some new content, and also produces the new Atari 2600+ console. In the past it produced titles including Neverwinter Nights, Driver 3, Fahrenheit, RollerCoaster Tycoon 3 and Test Drive Unlimited.
Its origins date to GT Interactive Software Corp. in 1993, which published games such as Doom II, Quake, Driver, and the first Unreal. Infogrames acquired the majority of the company's shares in 1999, and subsequently renamed it to Infogrames, Inc. Two years after Infogrames's purchase of the Atari brand and assets from Hasbro Interactive, the company was rebranded to Atari, Inc., initially serving as Infogrames's US operations. In 2008 it became a wholly owned subsidiary of Infogrames, now known as Atari SA, and activities were largely consolidated into Atari Inc.
GT Interactive Software Corp. was founded in February 1993 in New York as the video game publishing division of GoodTimes Home Video, a video-tape distributor owned by the Cayre family, with Ron Chaimowitz as co-founder and president. In its first year, revenue reached $10.3 million. Their first product was the retail release of Wolfenstein 3D. GT was unusual among many publishers as they allowed developers they contracted to retain their intellectual property.
GT Interactive revenue soared 880% and reached $101 million in its second year of existence, with profits reaching $18 million. GT Interactive's partnership with id Software scored another hit with Doom II: Hell on Earth, which was released in October 1994 and sold over 2 million copies. That year, Harry M. Rubin became chief financial officer. In February 1995, GT Interactive obtained the publishing rights to games based on Mercer Mayer property, which included Little Critter and Little Monster. GT Interactive began to set up displays at Kmart and Walmart for low cost software. GT Interactive signed an exclusive software supplier agreement with Walmart that meant, according to UBS Securities analyst Michael Wallace, "All software developers have to deal with GT if they want to sell in a Walmart."
In December 1995, GT Interactive debuted on the NASDAQ stock exchange under the stock symbol GTIS. Raising $140 million with its initial public offering, it was one of the biggest IPOs of the year. GT Interactive offered 10 million shares to the public at $14 each. During GT Interactive's IPO, Joseph Cayre sold more than 1.4 million shares, 9.2% of his shares, for a $20 million return. GT Interactive reported a strong revenue growth of 134% in the year to $234.4 million but, in the first sign of trouble ahead, profits increased a meager 23% to $22.6 million.
In January 1997, GT Interactive bought One Stop, a European value software publisher, for $800,000 in cash. In June GT Interactive signed a deal with MTV, the deal gave GT Interactive the rights to publish games based on Beavis and Butt-head and Æon Flux. By October, GT Interactive added their second developer purchase to their portfolio - SingleTrac, for $14.7 million — $5.4 million in cash and $9.3 million in stock. SingleTrac owned and developed such games as Twisted Metal and Jet Moto. In September, Humongous division Cavedog Entertainment, made its first release, Total Annihilation, which sold more than 1 million copies.
On October 5, 1997, GT Interactive announced that it had signed a definitive agreement to acquire MicroProse for $250 million in stock; the deal had even been unanimously approved by the Board of Directors of both companies and was expected to be completed by the end of that year. The merger would have made GT Interactive the second largest U.S. gaming software company, exceeded only by Electronic Arts. But on December 5 the acquisition was cancelled, according to both CEOs "the time is simply not right" for the deal. MicroProse's stock plummeted after the announcement of the deal's cancellation. GT Interactive's result was n
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In March 1995, GT Interactive signed a $35 million deal with Midway Games to become the exclusive distributor for Midway products outside North America for four years, to end in 1998, and was later expanded to end at the end of March 2000.
By 1996, GT Interactive began expanding by purchasing other publishers and distributors. The company purchased budget publisher WizardWorks for 2.4 million shares on June 25, which would form together as part of the company's GT Value Products division. WizardWorks' Macintosh publishing division MacSoft became a stand-alone division of GT. On 1 July, they purchased FormGen for 1 million shares and followed this up on July 11 by purchasing Humongous Entertainment for 3.5 million shares, or $76 million. Humongous formed as the first developer owned by the publisher, and their revenue had risen to $10 million in 1995, an increase of 233% over 1994's revenue of $3 million. In November, GT would gain an expanded distribution arm in Western Europe by purchasing Warner Interactive Europe (including Renegade Software) from Time Warner for $6.3 million in cash.
In a sign of uncertainty for its future, GT Interactive, for the year, reported a net income increase of only 11% over the previous year to $25.1 million. Revenue growth also decelerated to 56%, revenue for the year was $365 million. Making matters worse, net income in the fourth quarter reduced 16.8% to $8.5 million when compared to 1995's fourth quarter.
