Atari Corporation

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For information on the Atari brand and its history , see Atari.

Atari Corporation was a manufacturer of computers and video game consoles from 1984-1996. Atari Corp. was founded in July 1984, Warner sold the home computing and game console divisions of Atari to Jack Tramiel, the then recently ousted founder of Atari competitor Commodore International, under the name Atari Corporation for $240 million in stocks under the new company.

Atari Corporation.


Fate	Closed, properties sold


Founded	1984
Defunct	1996
Location	United States
Products	Pong Atari 2600 Atari 5200 others
Key people	Jack Tramiel (founder) Ted Dabney (co-founder)
Parent	Warner Communications

1 History
2 Atari Corp.'s reverse merger with JT Storage Inc.
3 Major products
4 See also
5 References
6 External links

[edit] History

Atari ST

Under Tramiel's ownership, Atari Corp. used the remaining stock of game console inventory to keep the company afloat while they finished development of their 16-bit computer system, the Atari ST. In 1985, they released their update to the 8-bit computer line, the Atari XE series, as well as the 16-bit Atari ST line. Then, in 1986, Atari Corp. launched two consoles designed under the Warner Atari - Atari 2600jr and the Atari 7800 console (which saw limited release in 1984). Atari Corp. rebounded, producing a $25 million profit that year. The Atari ST line proved very successful (but mostly in Europe, not the U.S.), ultimately selling more than 4 million units. It was especially popular among musicians, as it had built in MIDI ports. Still, its closest competitor in the marketplace, the Commodore Amiga, outsold it 3 to 2. Atari eventually released a line of inexpensive IBM PC compatibles as well as an MS-DOS compatible palm computer called the Atari Portfolio.

In 1989, Atari Corp. also released the Atari Lynx, a handheld console with color graphics, to critical acclaim. However, a shortage of parts kept the system from being released nationwide for the 1989 Christmas season. As a result, the Lynx lost market share to Nintendo's Game Boy, which had only a black and white display but was widely available. Also in 1989, Atari Corp. sued Nintendo for $250 million, alleging it had an illegal monopoly. Atari lost.

As the fortunes of Atari Corporation's ST and PC compatible computers faded, consoles and software again became the company's main focus. In 1993, Atari Corp. released its last console, the Atari Jaguar. After a period of initial success, it, too, failed to meet expectations. It was not nearly as powerful as Sony Computer Entertainment's PlayStation or Sega's Saturn and lacked the extensive third party support its Japanese competitors had easily secured for their consoles.

[edit] Atari Corp.'s reverse merger with JT Storage Inc.

By 1996, a series of successful lawsuits followed by profitable investments had left Atari with millions of dollars in the bank, but the failure of the Lynx and Jaguar left Atari without any products to sell. In addition, Tramiel and his family wanted out. The result was a rapid succession of changes in ownership. In July 1996, Atari merged with JTS Inc.,a short-lived maker of hard disk drives, to form JTS Corp.^[1] Atari's role in the new company largely became a holder for the Atari properties and minor support, consequently the name largely disappeared from the market.

In March 1998, JTS sold the Atari name and assets to Hasbro Interactive for $5 million—less than a fifth of what Warner Communications had paid 22 years earlier. This transaction primarily involved the brand and intellectual property, which now fell under the Atari Interactive division of Hasbro Interactive. The brand name changed hands again in December 2000, when French software publisher Infogrames took over Hasbro Interactive.