Atari Corporation facts for kids
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Formerly
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Tramel Technology, Ltd. |
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| Fate | Merged into JT Storage; assets later acquired by Hasbro Interactive |
| Predecessor | Atari, Inc. |
| Successor | Atari Interactive |
| Founded | May 17, 1984 |
| Founder | Jack Tramiel |
| Defunct | July 30, 1996 |
| Headquarters | , |
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Key people
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Atari Corporation was an American company that made computers and video game consoles. It was started by Jack Tramiel on May 17, 1984. At first, it was called Tramel Technology, Ltd. But less than two months later, it bought the home computer and game console parts of Atari, Inc. from Warner Communications. Then, it changed its name to Atari Corporation.
Some of its most famous products were the Atari ST computer, the Atari 7800 game console, the Atari Lynx handheld, and the Atari Jaguar console. The company later joined with another company called JTS Inc. in 1996. Its assets were then bought by Hasbro Interactive in 1998.
Contents
The Story of Atari Corporation
How Atari Corporation Began
The company was founded by Commodore International's creator, Jack Tramiel. He started it soon after leaving Commodore in January 1984. His new company, Tramel Technology, Ltd., aimed to create and sell a new kind of home computer.
On July 1, 1984, Tramel Technology bought the consumer electronics part of Atari, Inc. from Warner Communications. After this purchase, Tramel Technology was renamed Atari Corporation. Warner sold this part of Atari for $240 million in company shares.
Turning Things Around
To stop the big financial losses Atari, Inc. had been facing, Jack Tramiel closed almost all of its 80 offices in the U.S. He also let go of many staff members and sold off old products. Under Tramiel, Atari used its remaining stock of game consoles to stay in business. This gave them time to finish building their new 16-bit computer system, the Atari ST.
In 1985, Atari released an updated version of its 8-bit computer line, called the Atari XE series. They also launched the 16-bit Atari ST computers. In 1986, Atari Corp. brought out two game consoles that were designed before Tramiel took over: the Atari 2600 Jr and the Atari 7800. The Atari 7800 had a small release in 1984.
Atari Corporation started to do much better, making a profit in 1986. The Atari ST computers were very popular, especially in Europe, selling over 5 million units. They were well-liked by musicians because they had special MIDI ports built-in. However, its main competitor, the Commodore Amiga, sold more units. Atari also made affordable IBM PC compatible computers and a small, portable computer called the Atari Portfolio.
Challenges and Reputation
Atari, under Jack Tramiel, sometimes had a difficult reputation. Some people felt the company was too focused on saving money. This sometimes led to problems with customer service and product instructions. Release dates for new products were also sometimes not accurate.
Despite these issues, Atari Corporation was more open with the press than the earlier Atari Inc. had been. This helped magazines like Antic share news about upcoming products.
The company faced some financial difficulties, including a large investment in a retail chain called the Federated Group. This investment did not turn out well for Atari.
New Consoles and Decline
In 1989, Atari released the Lynx, a handheld game console with a color screen. It received good reviews. However, there weren't enough parts to make enough systems for the 1989 Christmas shopping season. Because of this, the Lynx lost out to Nintendo's Game Boy. The Game Boy only had a black and white screen, but it had much better battery life and was widely available.
As Atari's computer sales slowed down, video games became the company's main focus again. In 1993, Atari released its last game console, the Jaguar. It was one of the first consoles of its generation and was advertised as the world's first 64-bit console.
However, the Jaguar did not have many games, and some of them were not very good. It was also very hard for game developers to create games for the system because of its complex design. This meant it could not compete well against popular consoles like the Sega Saturn and Sony PlayStation.
The End of Atari Corporation
In December 1995, Sam Tramiel, Jack's son and Atari's president, had a heart attack. This led Jack Tramiel to return and lead the company again. In early 1996, Atari Corporation announced a new division called Atari Interactive. This division was meant to create games for personal computers.
However, by February 1996, Atari had money in the bank from successful lawsuits and investments. But, because the Jaguar console had not sold well, the company had no new products to sell. The Tramiel family also wanted to leave the business.
On February 13, 1996, Atari agreed to join with JTS Inc., a company that made hard drives. This merger was completed on July 30, 1996. Atari's role in the new company mostly became holding its old properties. Most of Atari's employees were let go or left, and its Atari Interactive division was quickly closed. The Atari name almost disappeared from the market.
On March 13, 1998, JTS Corporation sold the Atari name and its assets to Hasbro Interactive for $5 million. This was much less than what Warner Communications had paid years earlier. The deal mainly involved the brand and intellectual property rights. These rights then went to Hasbro's Atari Interactive division.
On May 14, 1999, Hasbro Interactive made all rights to the Atari Jaguar public. This meant anyone could freely create and release software for the Jaguar without needing a license. Since then, many new games and unfinished games have been released for the Jaguar by fans.
Today, the Atari name continues through Infogrames, which bought Hasbro Interactive in 2001. This company later changed its name to Atari. The current Atari Interactive still owns and licenses all Atari trademarks. They also create many new games, some based on Atari's original ideas.
List of Products
- Atari ST (1985)
- Atari STacy (1989)
- Atari TT030 (1990)
- Atari MEGA STE (1991)
- ST BOOK (1991)
- Atari Falcon (1992)
- Atari XE series (1985)
- Atari XEGS (1987)
- Atari 7800 (1986)
- "Atari 2600 Jr." (1986)
- Atari Transputer Workstation (1989)
- Atari Portfolio (1989)
- Atari Lynx (1989)
- Atari Panther (cancelled)
- Atari Jaguar (1993)
- Atari Jaguar CD (1995)
Images for kids
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The Atari ST computer, popular for its MIDI ports.
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The Atari 7800, a game console released in 1986.
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The Atari Portfolio, a small, portable computer.
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The Atari Jaguar, marketed as the world's first 64-bit console.
