Atari U.S. operations file for bankruptcy in spinoff ploy

Ben Fritz, LA Times: The U.S. operations of iconic but long-troubled video game maker Atari have filed for bankruptcy in an effort to break free from their debt-laden French parent.

Atari was acquired by French video game maker Infogrames in 2003, which later changed its name to Atari S.A. In recent years, the U.S. part of the business has rebuilt itself as a Web and mobile game publisher, experimenting with ad-supported models and limited partnerships—including short-term campaigns with new non Gamstop betting sites—that never quite scaled. A complex relationship with the parent company in France and London financiers has kept Atari’s U.S. operations from growing more quickly, Fritz reports. The bankruptcy move would unshackle the U.S. organization from its European counterpart and its debt.