Atari Reaffirms Dedication To VCS Console After Cancelling Its Manufacturing Contract


Atari not too long ago launched its half-year earnings report for the present monetary yr, and it did not appear to have a lot excellent news for the Atari VCS console. As picked up by Tom’s Hardware, the report pointed to a decline in Atari’s {hardware} gross sales, together with a reorganization of the {hardware} aspect of the enterprise that will contain suspending relationships with the VCS’ producer.

The report factors to a 92% lower in {hardware} income year-on-year, dropping from $2.44 million to solely $212,466. Atari factors to a decline in “cartridge exercise” to account for this drop, in addition to “underperformance by the VCS.” General, Atari reported a 27% lower in income from the identical interval final yr.

Now Enjoying: Atari 50: The Anniversary Celebration Launch Trailer

The report additionally mentions that Atari have been busy with a reorganization of its {hardware} enterprise for the primary half of the monetary yr. This consists of “the suspension of direct {hardware} manufacturing relationships, notably close to the Atari VCS.” Atari specified that it would not be giving up on the console, as a substitute choosing “a brand new business technique [that] has been carried out as of the top of calendar yr 2022 and that can proceed in calendar yr 2023.”

In a press release despatched to Tom’s {Hardware}, Atari reaffirmed its dedication to the console, saying: “We suspended our relationship with the unique manufacturing associate of the Atari VCS, however we proceed to take care of stock and fulfill new orders.”

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“Atari stays dedicated to the VCS platform,” the assertion continues. “We’ve got been including extra assist for sport builders and proceed so as to add new video games to the shop. {Hardware} is a crucial a part of Atari’s legacy and can proceed to be part of our long-term technique.

“We’ve got a number of {hardware} and software program tasks in improvement, beneath licensed contracts, that can increase the VCS ecosystem and create further utility for customers.”

Considered one of Atari’s {hardware} tasks noticed three new Atari 2600 cartridges launched earlier this yr, whereas its digital tasks have included Atari 50: The Anniversary Celebration, an anthology of video games, interviews, and memorabilia launched for the PlayStation, Change, Xbox, PC, and, in fact, the Atari VCS.

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