Atari arcade games

Atari () is a brand name that has been owned by several entities since its inception in 1972. It is currently owned by French publisher Atari SA through a subsidiary named Atari Interactive. The original Atari, Inc., founded in Sunnyvale, California, in 1972 by Nolan Bushnell and Ted Dabney, was a pioneer in arcade games, home video game consoles and home computers. The company's products, such as ''Pong'' and the Atari 2600, helped define the electronic entertainment industry from the 1970s to the mid-1980s.

In 1984, as a result of the video game crash of 1983, the home console and computer divisions of the original Atari Inc. were sold off, and the company was renamed Atari Games Inc. Atari Games received the rights to use the logo and brand name with appended text "Games" on arcade games, as well as the derivative coin-operated arcade rights to the original 1972–1984 arcade hardware properties. The Atari Consumer Electronics Division properties were in turn sold to Jack Tramiel's Tramel Technology Ltd., which then renamed itself to Atari Corporation. In 1996, Atari Corporation reverse-merged with disk-drive manufacturer JT Storage (JTS), becoming a division within the company. In 1998, Hasbro Interactive acquired all Atari Corporation related properties from JTS, creating a new subsidiary, Atari Interactive.

Infogrames Entertainment (IESA) bought Hasbro Interactive in 2001 and renamed it Infogrames Interactive, which intermittently published Atari-branded titles. In 2003, it renamed the division Atari Interactive. Another IESA division, Infogrames Inc., changed its name to Atari the same year, licensing the Atari name and logo from its fellow subsidiary.

In 2008, IESA completed its acquisition of Atari, Inc.'s outstanding stock, making it a wholly owned subsidiary. IESA renamed itself Atari SA in 2009. It sought bankruptcy protection under French law in January 2013.

As of 2022, the current Atari is pursuing several lines of business outside of video gaming, including cryptocurrency and video-game themed hotels.

History

Logotype

The name comes from the Japanese term '' atari'', used while playing the ancient board game Go. The word ''atari'' means “to hit a target” in Japanese and is associated with good fortune; in Go, it indicates a situation where a player will be able to capture one or more stones of the opponent in the next move.

The Atari logo was designed by George Opperman, who was Atari's first in-house graphic designer and drawn by Evelyn Seto. The design is known as "Fuji" for its resemblance to the Japanese mountain, although the logo's origins are unrelated to it. Opperman designed the logo intending for the silhouette to look like the letter A as in Atari and for its three "prongs" to resemble players and the midline of the "court" in the company's first hit game, ''Pong''.

Atari Inc. (1972–1984)

In 1971, Nolan Bushnell and Ted Dabney founded a small engineering company, Syzygy Engineering, that designed '' Computer Space'', the world's first commercially available arcade video game, for Nutting Associates. On June 27, 1972, the two incorporated Atari, Inc. and soon hired Al Alcorn as their first design engineer. Bushnell asked Alcorn to produce an arcade version of the Magnavox Odyssey's Tennis game, which would be named ''Pong''. While Bushnell incorporated Atari in June 1972, Syzygy Company was never formally incorporated. Before Atari's incorporation, Bushnell considered various terms from the game '' Go'', eventually choosing '' atari'', referencing a position in the game when a group of stones is imminently in danger of being taken by one's opponent. Atari was incorporated in the state of California on June 27, 1972.

In 1973, Atari secretly spawned a competitor called Kee Games, headed by Nolan's next-door neighbor Joe Keenan, to circumvent pinball distributors' insistence on exclusive distribution deals; both Atari and Kee could market nearly the same game to different distributors, each getting an "exclusive" deal. Joe Keenan's management of the subsidiary led to his promotion to president of Atari that same year.


In 1975, Atari's Grass Valley, California subsidiary Cyan Engineering started the development of a flexible console that was capable of playing the four existing Atari games. The result was the Atari Video Computer System, or VCS (later renamed 2600 when the 5200 was released). The introductory price of $199 () included a console, two joysticks, a pair of paddles, and the ''Combat'' game cartridge. Bushnell knew he had another potential hit on his hands but bringing the machine to market would be extremely expensive. Looking for outside investors, Bushnell sold Atari to Warner Communications in 1976 for an estimated $28–32 million, using part of the money to buy the Folgers Mansion. Nolan continued to have disagreements with Warner Management over the direction of the company, the discontinuation of the pinball division, and most importantly, the notion of discontinuing the 2600. In 1978, Kee Games was disbanded. In December of that year, Bushnell was fired following an argument with Manny Gerard. " started fighting like cats and dogs. And then the wheels came off that fall. Warner claimed they fired me", recalled Bushnell. "I say I quit. It was a mutual separation."

The development of a successor to the 2600 started as soon as it shipped. The original team estimated the 2600 had a lifespan of about three years; it then set forth to build the most powerful machine possible within that time frame. Mid-way into their effort the home computer revolution took off, leading to the addition of a keyboard and features to produce the Atari 800 and its smaller sibling, the 400. The new machines had some success when they finally became available in quantity in 1980. From this platform Atari released their next-generation game console in 1982, the Atari 5200. It was unsuccessful due to incompatibility with the 2600 game library, a small quantity of dedicated games, and notoriously unreliable controllers. Porting arcade games to home systems with inferior hardware was difficult. The ported version of '' Pac-Man'' for Atari 2600 omitted many of the visual features of the original to compensate for the lack of ROM space and the hardware struggled when multiple ghosts appeared on the screen creating a flickering effect.

Under Warner and Atari's chairman and CEO, Raymond Kassar, the company achieved its greatest success, selling millions of 2600s and computers. At its peak, Atari accounted for a third of Warner's annual income and was the fastest-growing company in US history at the time. It ran into problems in the early 1980s, however, as interference from the New York-based Warner management increasingly affected daily operations. Its home computer, video game console, and arcade divisions operated independently and rarely cooperated. Faced with fierce competition and price wars in the game console and home computer markets, Atari was never able to duplicate the success of the 2600.

These problems were followed by the video game crash of 1983, with losses that totaled more than $500 million. Warner's stock price slid from $60 to $20, and the company began searching for a buyer for its troubled division. In 1983, Ray Kassar had resigned and executives involved in the Famicom merger lost track of negotiations, eventually killing the deal. With Atari's financial problems and the Famicom's runaway success in Japan after its July 16, 1983, release, Nintendo decided to remain independent.

Financial problems continued to mount and Kassar's successor, James J. Morgan, had less than a year in which to tackle the company's problems. He began a massive restructuring of the company and worked with Warner Communications in May 1984 to create "NATCO" (an acronym for New Atari Company). NATCO further streamlined the company's facilities, personnel, and spending. Unknown to James Morgan and the senior management of Atari, Warner had been in talks with Tramel Technology to buy Atari's consumer electronics and home computer divisions. Negotiating until close to midnight on July 1, 1984, Jack Tramiel purchased the home computing and game console divisions of Atari for $50 cash and $240 million in promissory notes and stocks, giving Warner a 20% stake in Atari Corporation who then used it to create a new company under the name Atari Corporation. Warner retained the arcade division, continuing it under the name Atari Games, but sold it to Namco in 1985. Warner also sold the Ataritel division to Mitsubishi.

Atari Corporation (1984–1996)

Under Tramiel's ownership, Atari Corp. used the remaining stock of game console inventory to keep the company afloat while they finished development on a 16/32-bit computer system, the Atari ST. ("ST" stands for "sixteen/thirty-two", referring to the machines' 16-bit bus and 32-bit processor core.) In April 1985, they released the first update to the 8-bit computer line — the Atari 65XE, the Atari XE series. June 1985 saw the release of the Atari 130XE; Atari User Groups received early sneak-preview samples of the new Atari 520ST's, and major retailer shipments hit store shelves in September 1985 of Atari's new 32-bit Atari ST computers. In 1986, Atari launched two consoles designed under Warner — the Atari 2600jr and the Atari 7800 console (which saw limited release in 1984). Atari rebounded, earning a $25 million profit that year.

In 1987, Atari acquired the Federated Group for $67.3 million, securing shelf space in over 60 stores in California, Arizona, Texas and Kansas at a time when major American electronics outlets were reluctant to carry Atari-branded computers, and two-thirds of Atari's PC production was sold in Europe. The Federated Group (not related to Federated Department Stores) was sold to Silo in 1989.

In 1988, the company unveiled the 1040STF and the Mega ST with a bit image manipulator chip, and launched its first parallel computer. The ATW-800 Transputer was based on the Inmos T800 CPU, which had a 32/64-bit architecture, ran at 15 million instructions per second (MIPS) and housed a Charity videochip that supported 16 million colors. The company continued to experiment with parallel computing aiming at B2B customers and graphic designers, but the transputer line failed to achieve commercial success.

In 1989, Atari released the Atari Lynx, a handheld console with color graphics, to much fanfare. A shortage of parts kept the system from being released nationwide for the 1989 Christmas season, and the Lynx lost market share to Nintendo's Game Boy, which, despite only having a black and white display, was cheaper, had better battery life and had much higher availability. Tramiel emphasized computers over game consoles but Atari's proprietary computer architecture and operating system fell victim to the success of the Wintel platform while the game market revived. In 1989, Atari Corp. sued Nintendo for $250 million, alleging it had an illegal monopoly. Atari eventually lost the case when it was rejected by a US district court in 1992.

In 1991, Atari released its PCs ABC386SXII and ABC386DXII based on Intel’s i386

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