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Infogrames Clarifies Development Situation

Following the announcement that Atari is to close its development business and focus on publishing and distribution, French parent company Infogrames has moved to clarify that the company has in no way halted its own development plans.
Following the announcement that Atari, Inc. is to close its development business and focus on publishing and distribution in North America, officials from French parent company Infogrames has moved to clarify that the company has in no way halted its own development plans. Infogrames Entertainment has two principal subsidiaries: Atari Europe, a privately-held company, and Atari, Inc., a U.S. corporation in which Infogrames is the 51 percent shareholder. As a result of the possible confusion relating from Atari, Inc.’s announcements Infogrames has issued the following statement: “The [Atari press release] only concerns the business of the Group’s 51 percent owned U.S. subsidiary, Atari Inc., currently responsible for publishing and distributing video games in North America. The announcement states that Atari Inc.’s operations will involve title acquisition, sales and marketing, and physical distribution of products from Infogrames and other partners’ in North America. In June, Infogrames Entertainment, incorporating Atari Europe, announced a new strategy focused on the re-launch of its publishing business based on an integrated global structure for development and production of games, as well as on the continued reinforcement of its distribution subsidiaries. For Infogrames Entertainment’s game development and production, the Group’s publishing division relies on its own Eden Games studio and on partnerships with a worldwide network of independent studios. The recent decisions by Atari, Inc. are consistent with this corporate strategy and do not undermine the Infogrames Group’s ability to carry out its video game development program and to continue selling products under the Atari brand name.” In September, Infogrames revealed that it was planning to restore profitability at Atari, which soon led to the resignation of five Atari board members, and, eventually, the resignation of CEO David Pierce.

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