Atari S.A. - PONGF stock
OTC Symbol: PONGF | OTC Tier: Pink Current
Company Profile[edit]
Atari S.A. [OTCMkt: PONGF] is a global multiplatform entertainment and licensing firm. It produces, publishes, and distributes interactive entertainment software. The French-based company also develops and deals in compelling video games for a myriad of consoles including iPhones, Android terminals, Microsoft, personal computers, advanced smartphones, tablets, Nintendo and Sony, online, and web. Its product pipeline is advanced under brands such as Asteroids, Missile Command, Centipede, Test Driver, RollerCoaster Tycoon, and Pong. Atari was founded in June 1972 by Ted Dabney and Nolan Bushnell.[1] It was initially known as Infogrames Entertainment S.A. and changed its name in May 2009 to Atari SA. Its shares are listed for trading on the Euronext Paris stock exchange and the U.S. OTC market under the PONGF ticker. The company is headquartered in Paris, France.[2]
Corporate Business Operations[edit]
The company and its subsidiaries engages in four core scopes of business: Games, Blockchain Hardware, and Licensing. It has a revenue generation strategy that focuses on the monetization of its portfolio of intellectual property. The strategy also encompasses direct or licensing agreements for the development of hardware, video games, consumer products, and media content at the crossroads of interactive entertainment, Web3, and the digital world.[3] Since its inception, Atari has been instrumental in the scope of arcade games, game consoles, and personal computer industry development. The company has shown commitment by improving gamers’ experience and expanding its pipeline of PC, console, and mobile games. The company manages a portfolio of over 200 games and franchises.[4]
Atari has several subsidiaries including Eden Games, Atari Interactive Inc., and Atari Europe SAS, among others. The firm’s catalog of games is backboned on original franchises (V-Rally, Backyard Sports franchise), Cryptic Studios titles (Champions Online, StarTrek Online), publishing properties (Ghostbusters, The Witcher, The Chronicles of Riddick, Race Pro), international licenses (Dungeons & Dragons, Dragon Ball Z, etc.) and classic games (Asteroids, Missile Command, Pong).[5] It offers Atari VCS, a sleek modern mini PC that delivers an improved experience for gamers and creators. Atari XP publishes collectible physical games, commencing with those that were never released and unique Atari games from the 1970s and 80s era. Atari X was officially launched in May 2022 to facilitate the company’s commitment to blockchain technology and create a strong blockchain ecosystem that smoothly syncs with community, gaming, and utility.[6]
Acquisitions[edit]
Retro Arcade Games[edit]
Atari closed a mega acquisition of a dozen retro arcade games, which included the iconic 80s Berzerk and Frenzy, on March 16, 2023. The company intends to upscale the digital and physical distribution of iconic titles, develop new games based on the IP, and source brand and merchandising partnerships. Berzerk has constantly featured in the top 100 list of games.[7]
Intellivision Entertainment[edit]
Atari has acquired the Intellivision brand and select games from Intellivision Entertainment LLC. Intellivision Entertainment LLC will rebrand and continue its development of the Amico game console, licensed by Atari to distribute new versions of Intellivision games. Atari plans to expand digital and physical distribution of legacy Intellivision games, explore the creation of new games, and seek brand and licensing opportunities as part of a long-term strategy to generate value from the Intellivision properties.[8]
Surgeon Simulator[edit]
Infogrames, a subsidiary of Atari, has acquired the Surgeon Simulator franchise from tinyBuild Inc. The franchise, known for its over-the-top medical operation simulations featuring dark humor and unexpected surgical settings, began with the release of Surgeon Simulator for PC and Mac in 2013. It has since expanded with multiple updates and releases, including Surgeon Simulator VR in 2016, Surgeon Simulator CPR for Nintendo Switch in 2018, and Surgeon Simulator 2: Access All Areas in 2020.[9]
Transport Tycoon[edit]
Atari has acquired the Transport Tycoon franchise from the game's creator, Chris Sawyer. Released in 1994, Transport Tycoon set the standard for simulation games with its deep gameplay, detailed pixel graphics, subtle animations, and extensive configuration options. Players manage a transport company in the 1930s during the Great Depression, building an empire using trains, ships, trucks, planes, and helicopters while competing against computer-controlled rivals.[10]
Bread & Fred[edit]
Infogrames, a subsidiary of Atari, has acquired the publishing rights to Bread & Fred from Apogee Entertainment. Developed by Sand Castles Studio, the popular co-op game was released for PC on Steam in May 2023, followed by a Nintendo Switch version in May 2024. Infogrames plans to collaborate with Sand Castles Studio on content updates and extend the game to PlayStation and Xbox platforms in the near future.[11]
General Corporate Developments[edit]
The company significantly channeled its resources on the transformation of its operations while strategically building a blueprint for the development of its four lines of business for the first half of its 2022 calendar that ended September 30. The company executed its premium games strategy which is based on its own IP, launching three new premium games within the period. The firm focused its licensing activities on developing new licensing verticals targeting established and international brands and new geographies. Atari focused on building the foundation for its Atari X to propel its blockchain footprint. This entailed the formulation of partnerships and collaborations with Web3 partners and successful NFT sales implementation. The company is also considering new hardware development complementary to the Atari VCS under licensing contracts with partners.[12]
Legal Issues[edit]
Lawsuits[edit]
Atari has encountered several legal challenges in the course of its operations. The company and Nestle SA, a Swiss food company, settled a lawsuit on January 15, 2018. Atari had filed a suit accusing Nestle of using the former’s hit 1970s video game (Breakout) without authorization to sell Kit Kat bars. The copyright infringement case was dismissed by the Oakland District Court after the parties settled.[13]
On November 4, 2021, a California federal jury delivered judgment in favor of Redbubble in a lawsuit filed against the company by Atari. Atari, in 2018, filed a case against Redbubble citing infringement of its intellectual property rights through the creation, manufacturing, and distribution of counterfeit Atari clothing and printed materials. Redbubble operates an online store platform that allows artists to upload printed designs on apparel, homeware, and other accessories, which are sold via the artist’s storefront.[14]
- ↑ Atari Profile – Markets Insider. Accessed on April 13, 2023.
- ↑ Atari SA Description – Yahoo Finance. Accessed on April 13, 2023.
- ↑ HALF-YEAR FINANCIAL REPORT AS OF SEPTEMBER 30, 2022/Description of the group’s activity, Page 15 – Atari Investors website. Published December 16, 2022.
- ↑ About Atari/Who We Are – Atari website. Read on April 13, 2023.
- ↑ Atari COMPANY DETAILS – CNBC News. Accessed on April 13, 2023.
- ↑ Atari SA/Home – Atari website. Accessed on April 13, 2023.
- ↑ Atari Announces Acquisition of 12 Classic Arcade Properties, Including Berzerk and Frenzy – Yahoo Finance. Published March 17, 2023.
- ↑ GlobeNewswire. Atari Acquires Intellivision Brand. May 23, 2024.
- ↑ GlobeNewswire. Infogrames Acquires Surgeon Simulator Franchise. June 26, 2024.
- ↑ GlobeNewswire. Atari Acquires Chris Sawyers’ Transport Tycoon. November 1, 2024.
- ↑ GlobeNewswire. Infogrames Acquires Publishing Rights of Co-op Hit Bread & Fred. November 4, 2024.
- ↑ HALF-YEAR FINANCIAL REPORT AS AT SEPTEMBER 30, 2022/ General corporate developments, Page 4 – Atari Investors website. Published December 16, 2022.
- ↑ Nestle, Atari settle lawsuit over Kit Kat campaign – Reuters. Published January 25, 2018.
- ↑ Atari Loses IP Suit Against Online Marketplace – Winston & Strawn. Published November 5, 2021.
