The Humongous assets include intellectual property and existing inventory and licence rights, including those related to the developer’s Backyard sports series.
$2m of the purchase price represents prepayment of Atari’s future costs from royalty advances, manufacturing costs and milestone payments. The deal comes as Atari moves to streamline its portfolio following a disappointing set of financials, along with the closure of development studios in California and Massachusetts.
“As we streamline the operations of the company and focus on cost controls, we remain committed to developing high-quality titles that appeal to both mass consumers as well as hardcore gamers,” said Atari chairman Bruno Bonnell.
“This transaction substantially contributes to our resources for the launch of our largest titles in the holiday season and further enhances our capacity to develop new titles.”