Atari acquires System Shock remake developer Nightdive for up to $19.5 million

Nightdive described Atari as the "ideal partner."

Atari has acquired System Shock developer Nightdive Studios for up to $19.5 million to support its retro-focused growth strategy.

The deal will see Atari hand over an initial consideration of $9.5 million in cash and newly-issued shares, and includes a performance-based earn-out of up to $10 million.

In a press release, Atari CEO Wade Rosen described Nightdive as "leaders in retro gaming" and said the company intends to help the U.S. studio "flourish."

Atari's retro growth

Nightdive is currently working on a System Shock remake that aims to update the 1994 shooter with all-new HD visuals, reworked controls, and an overhauled interface.

The company is also known for contributing to the development of other classic releases and remasters such as Quake, Doom 64, Turok, Terra Nova: Strike Force Centauri, and Shadow Man.

Stephen Kick, CEO of Nightdive, believes the deal will allow the company to expand its reach and said Atari is the "ideal partner" because of its "shared passion for preservation and innovation in retro gaming."

Atari is currently attempting to reinvigorate its business by focusing on "commercializing classic retro IP." With that goal in mind, the company has acquired the rights to over 100 classic titles, including franchises like Bubsy and Hardball.

Under the stewardship of Rosen, who made a friendly offer to purchase Atari last year, the company intends to build a vast catalog of retro properties so it can explore branding and merchandising opportunities, expand digital and physical distribution, and create more games.

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