Reporting its half-year results for 30 September 2022, the Paris-based company acknowledged any delays in the development of its four activities (Gaming, Hardware, Licensing and Blockchain), or that it expected, due to lower performance in its initiatives. could make less money than it could make, and in turn spark “a liquidity crunch and additional financing requirements”.
Atari has been weighed down by an “uncertain macro-environment” for video games and blockchain, and therefore “may require additional funding resources” as the company considers actually implementing its new strategy.
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Options mentioned include new debt with its main shareholder Erata, a company controlled by Atari’s current chairman and CEO Wade Rosen, and/or raising new financing from elsewhere, including refinancing to meet capital needs. may include a “public offering”. Company’s debt”.
All of this sounds like tough times for Atari, which is certainly a different company now than in its glory days. Now Atari is involved in the likes of Web 3, NFTs and blockchain on top of licensing and hardware production.
These initiatives are fighting for success. For the first half of the fiscal year ending September, Atari revenue was €4.3 million, down 27 percent from the €6 million it generated in the same period last year.
Atari said this was mostly due to the failure of its hardware business and the controversial VCS console, which suffered huge delays before its launch last year. Separately, hardware business revenue fell 92 percent from €2.3m to just €200,000.
However, games revenue grew 10 percent due to new games in the Rollercoaster Tycoon and Recharged series. Licensing revenue decreased by 18 percent and blockchain revenue (NFT sales) increased from a low base of €400,000 to €700,000.
Overall, Atari had a net loss of €5.4m, up from a loss of €3.5m during the same period the previous year.
Atari is soldering, and in a statement released to Tom’s Hardware insisted that it “remains committed to the VCS platform”.
In April, Atari killed its ATRI token and Atari Chain projects. At the time, Atari said it would investigate creating a new token as a component of its blockchain roadmap, but it appears that’s not happening — or if it is, it’s not happening anytime soon.
“The project still remains in its early stages of development as Atari considers the various structural options and regulatory framework available to make this project relevant to its community of fans, as well as the current uncertainty surrounding the blockchain market environment.” and partners,” Atari said.
Meanwhile, the Atari 972 is sitting on a “parcel of land” in the sandbox metaverse. It is not doing anything for the fictional real estate company and will not do so for at least the next 12 months.
In its gloomy outlook, Atari said it was too early to expect its “transformation strategy” to have a significant impact on revenue and profitability.
The company stressed, “In a challenging macro-environment for video game and blockchain initiatives, Atari intends to continue to focus on executing its roadmap and transforming its operations across all four areas of the business.”