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Atari to back away from boxed product

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Atari to back away from boxed product

Harrison and Gardner reveal that 90 per cent of Atari’s games will be online in a few years

Atari has revealed that 90 per cent of its output will be online-only in a few years as it increasingly favours online titles over traditional retail.

The publisher’s recent deal with Namco Bandai includes a clause which gives the Japanese developer and publisher the option to buy Infogrames’ distribution business outright in five years’ time – giving Atari the opportunity to concentrate fully on its vision of becoming a top-five online brand.

"We’re taking the first steps here," Atari CEO David Gardner told MCV. "In five years, Namco Bandai will probably own the majority of it, it will no longer be our responsibility and Atari will be just an online company – within five years we’ll have 90 per cent online products."

And Atari president Phil Harrison added that the publisher is starting to build a new ‘online-only’ global development empire.

"We want to grow our business and part of that growth strategy includes geographic expansion," he told MCV. "We have a huge talent base in the UK that we would like to attract to our organisation."

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"The signing of Paulina Bozek to the London studio is a great first step towards that and by no means our only step. We are looking at other geographic locations as well."

Take a look at the full interview with David Gardner and Phil Harrison here.

eh

posted by Sep 18, 2008 at 12:01 pm
1

Isn't Phil Harrision Sony and not Atari?

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NOT MUCH OF AN XMAS GIFT

posted by james haywood Sep 18, 2008 at 12:01 pm
2
james haywood

well not great for wrapping up and giving as a gift ! maybe cheaper to sell due to production cost slashed but, i think this is a way off yet, they cant even sort out lag in online games, alot of parents dont trust the internet and prefer not to put the cc details online,it will happen but not as fast as some seem to suggest

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:-/

posted by Sam Sep 18, 2008 at 12:01 pm
3
Sam

Then, I won't buy Atari games anymore !

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Re: :-/

posted by Bob Sep 18, 2008 at 12:17 pm
4
Bob

Nice insight you three! The first post sums up how up to date you Indies are!

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wow bob

posted by stevie Sep 18, 2008 at 12:38 pm
5
stevie

and you bob are an industry analyst? why would these valid opinions be so out of date acording to you? you dont seem to expalin yourself,
downloadeds certainly worry me as a retialer, i mean we hardly sell ds lite games now due to illegal downloads of the games and the R4 card, but take for instance the siren game takes quite a few hours to download from psn store, very very good game, but it does make you think where does this leave my business? this seems to be the only concern for me.

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Distribution not key

posted by geeQ Sep 18, 2008 at 1:10 pm
6
geeQ

The way in which a publisher distributes it's content is not the key to future growth. Atari have been a company with no direction for a long time and now they seem to feel that online distribution is the thing that will offer them the key to ending there woes. However what Atari have failed to realise is that the quality of the product you are distributing is the key... Make a game that is great and people will buy, simply as that... Eidos I'm also looking at you!

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Re: Distribution not key

posted by Atari to go BUST Sep 18, 2008 at 1:41 pm
7
Atari to go BUST

I hope they FAIL!!!! Boxed products till i die!!!

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Re: Re: Distribution not key

posted by JD Sep 18, 2008 at 2:25 pm
8
JD

@7

Chances are when you are dead, you also will be a boxed product!

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Re: Re: Re: Distribution not key

posted by koti Sep 18, 2008 at 7:15 pm
9

@4 How do you know he's an indie. This wasn't an Indie-only site the last time I looked.

With regard to the article I think it's not really news to anyone that this is the way publishers are thinking and if you happen to be one working your way towards greater profit margins this is a route you'd look at.

I think what's not said, which is that 10% of their sales will be boxed product shows their analysis of the way they see the market growing.

I'm not sure what the percentage DRM to boxed is of the UK's £3.3 Billion worth of games revenue is right now but I'd suggest that this statement is more indicative in the way they are predicting DRM will be growing revenues and if for example that boxed product were to be worth £3 Billion of that I believe they'd be factoring growth in that media too.

And quite frankly following the success of Test Drive Unlimited attachment rate on LIVE they're well placed to make an informed if somewhat optimistic projection.

Good luck to them.

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Re: Re: Re: Re: Distribution not key

posted by johnnyprozac Sep 18, 2008 at 8:10 pm
10

*yawn* This is how it's been for awhile now here in Korea, China, Taiwan, Singapore, Philippines, Thailand, Vietnam Brazil, Russia....

And none of that hot and bothered hubbub y'all have about piracy from domestic developers, publishers, and operators in these countries. Heh. it only those who try to do retail boxed product ( nominally US and UK companies) that complain. We usually either start snickering or rolling our eyes when that happens.

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With the greatest respect to the gentleman above.

posted by koti Sep 18, 2008 at 10:41 pm
11

You're talking ****.

And the reality of the countries that you mention above is a huge percentage of downloads are from illigitimate download sites.

So yeah. Go piracy! yaaaaaaargh.

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Re: With the greatest respect to the gentleman above.

posted by JD Sep 22, 2008 at 12:00 pm
12
JD

@Johnnyprozac

Korea, China, Taiwan, Singapore, Philippines, Thailand, Vietnam Brazil, Russia....

The majority of those country’s games sell for no more than £2 and that’s mainly pirated titles going straight to the seller. Therefore how can developers create a business model in country’s where thieving is tolerated and possibly supported!

“none of that hot and bothered hubbub y'all have about piracy from domestic developers, publishers, and operators in these countries.”

I would be very interested to know about which are these developers and more importantly how they are making money in these territories, I reckon they are not and you sir and talking complete and utter hog wash!

Korea, China, Taiwan, Singapore, Philippines, Thailand, Vietnam Brazil, Russia.... is almost the list of the country’s that western developers like turning to glass in the plot lines of games of late! Ummm!

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