Infogrames Shakes up U.S. Atari Board

Infogrames, Europe’s largest video games maker, has announced some big changes in store for U.S. Atari’s Board.

Five of the current board directors will be removed from Infogrames’ 51 percent owned U.S. affiliate Atari Inc to restore profitability. The new board is expected to select and appoint a chief restructuring officer to stabilize its operations and reduce its losses, repositioning Atari Inc. as a “reliable player in the U.S. video games market.”

Infogrames has stated Atari Inc. has become a significant drain on the group’s profitability. Losses so far this year have been reported at 50 percent.

At one time Atari was one of the big names in video games. In recent years, the company has been almost completely overshadowed by video game industry giants. It will be interesting to see if Atari can turn things around and become formidable once again.

via Reuters