Editor’s note: See also, “Game Over” from yesterday.

Atari announced today that the company will re-focus its operations on publishing and distribution, completely ending its game production business.

“Atari has determined to focus its resources on the publishing and distribution segments of the rapidly growing video game business,” the company said in a statement today. “The Company’s operations will involve title acquisition, sales and marketing, and physical distribution of products from IESA, its 51% shareholder, and other selected partners.”

Translation: Atari is not going to make games anymore. They are going to bird-dog and market games for its French parent company, Infogrames in North America.

Atari has licensed its Test Drive racing franchise, originally held by Accolade, to Infogrames. Infogrames bought Accolade in 1999, and Atari inherited the platform.

This is a major development in the gaming community as questions have been raised within Atari about its future ability to develop video games. Those questions now appear to be answered.

Atari will also reduce its workforce and transition certain employees to Infogrames.

“Atari continues to take important steps to stream-line operations and establish a winning business plan,” said Curtis G. Solsvig III, Atari’s Chief Restructuring Officer. “We expect that the actions we are undertaking today will position us for the future as a preferred business and distribution partner.”

The move ends one of the oldest eras in electronic entertainment history.

About The Author

John Guilfoil is the editor-in-chief of Blast: Boston's Online Magazine and the Blast Magazine Network. He can be reached at guilfoil.j@blastmagazine.com. Tweet @johnguilfoil.

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