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 Test Drive  Licensed To Infogrames As Atari Exits Development

Test Drive Licensed To Infogrames As Atari Exits Development

November 14, 2007 | By Brandon Boyer

November 14, 2007 | By Brandon Boyer
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As Atari's CEO resigns, the company has announced it is withdrawing from the development business to refocus purely on publishing and distribution, licensing its Test Drive franchise to parent company Infogrames.

The six year Test Drive agreement includes a $5 million advance royalty and allows Infogrames to develop and market at least two new iterations of the franchise. Atari says the deal "will assure the continued vitality of the franchise and will strengthen the relationship between Atari and its parent company while providing an important element in the on-going financial restructuring of Atari."

That restructuring will see all production and quality assurance services cease in lieu of a firm focus on "title acquisition, sales and marketing, and physical distribution of products" from both Infogrames and "other selected partners." Atari says it will "transfer certain employees and contract other staff on a project basis for a limited period of time."

Said acting CEO Curtis G. Solsvig III, "Atari continues to take important steps to stream-line operations and establish a winning business plan. We expect that the actions we are undertaking today will position us for the future as a preferred business and distribution partner."


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