One of the originals and famous game makers, Atari, has failed to keep up with the times. The US branch of Atari has recently filed for a Chapter 11 Bankruptcy in order to reorganize their business to give them time to enter the digital and mobile gaming communities.
Atari is an early trailblazer in the gaming industry, introducing such games as Asteroids, Centipede, and Pong It. In a reported earlier attempt to satisfy their growing debt, Atari first sought investors, then buyers of their logo, and eventually they tried to sell their entire US operations including its once prosperous catalog department. Until their selling attempts are successful, Atari has reportedly opted to file for bankruptcy protection and reorganization under a Chapter 11 bankruptcy.
Is the move Atari made a sign of the times for things to come?
With the economy slowly beginning to show signs of recovery, now is the time for flailing businesses to cut out the fat of their business, get lean, and look toward keeping up with the times. Especially, in the gaming industry working within a computerized world, it only makes sense for a business to invest in what reaches their customers. You need to put your product in front of the customer.
Video arcades and special gaming equipment may not completely go away, at least not overnight, but there are many more young people using smaller and single unit mobile devices today to play games. Digital innovations and graphics have tremendously improved in the past 10 years. To some degree, Atari must have failed in keeping up with these changes.
Many companies within the gaming and computer industry fail because they cannot or unwilling to keep up with the rapid change of advancements in technology. So, it is likely that Atari’s move to file for Chapter 11 bankruptcy protection may certainly be a sign of the times for things to come, especially within this industry.
Only the lean and hungry companies that can provide the consumer with more for their buck will most likely be the ones to survive in the future. US consumers today are much more technological savvy than in any time in the past, and most understand the value of a dollar.
Should other flailing businesses take a lessen from Atari?
Filing for bankruptcy protection is not for everyone or every business that gets into financial difficulty. I am sure Atari weighed all of their financial options and consulted with legal advice before they decided to file for reorganization.
Like in any business, there is more going on with Atari than meets the public eye. The US Division of Atari, a subsidiary of a French owned company, reportedly wanted to break away from the control of the their parent company. The move to sell its logo and catalog division, I understand from news articles, was an attempt to leave the parent company that was in control.
Many incorporated businesses and even privately held businesses often have in-fighting in trying to gain control of where the finances of a business are heading. If it is not stock holders, its board members that struggle for control; if its not partners, its family members that fight. Such is the nature of running business in America and most places around the world.
If you are a member of any business that is facing financial problems and you want to know if bankruptcy is an option for you, consult with your local bankruptcy attorney.
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