Atari Sees A 65 Percent Sales Decline for Fiscal Q1 2010
http://www.industrygamers.com/news/...nt-decline-in-net-revenue-for-fiscal-q1-2010/
Today, Atari released their results for the first quarter of fiscal year 2010 to 2011, ended June 30. The company reported net revenues of 19.3 million ($24.9 million), versus 54.5 million ($70.3 million) for the same period last year. This represents a 65 percent decline at the current exchange rate, but remained in line with Atari's expectations for the quarter.
The first quarter only saw one major release, Sandlot Sluggers, as opposed to two mainstream licensed titles last year, Ghostbusters: The Video Game and Chronicles of Riddick: Assault on Dark Athena. Retail revenue dropped to 10.9 million ($14 million) this quarter, with the company taking 42 million ($54.2 million) at retail in the prior year.
Online revenue was up, increasing in amount and percentage of the company's total revenue. Star Trek Online and Champions Online brought in 8.4 million ($10.8 million) for the quarter, an increase of 6.4 million ($8.2 million) over the previous year. Overall, the company's decision to publish Cryptic's online games bore fruit, with online revenue accounting for 44 percent of total net revenue, versus 4 percent last year.
For the rest of the year, Atari is sticking by its previous forecast and expects considerable improvement over the next few quarters. The company expects to release two marquee sequels, Test Drive Unlimited 2 and The Witcher 2: Assassins of Kings, over the course of the year. Haunted House will be shipping for the Wii, Xbox Live Arcade, and the PC on September 21, 2010. Backyard Sports: Rookie Rush will be released for Xbox 360, Wii, PC, and DS on October 26, 2010. Atari also intends to release a number of games based on its classic brands for XBLA, PlayStation Network, PC, and social networks.