Atari Games

Atari Games Corporation was an American producer of arcade games. It was originally the coin-operated arcade game division of Atari, Inc. and was split off into its own company in 1984.

History

When the Atari Inc. division of Warner Communications lost $500 million in the first three quarters of 1983, its arcade coin-op division was the only one to make money. In 1984 Warner sold the Atari Consumer division of Atari Inc. (which included the video game divisions) to Jack Tramiel (who named his company Atari Corporation), but retained the arcade coin-op division (Atari Coin), renaming it "Atari Games". The agreement between Tramiel and Warner Communications was that Atari Games must always include the "Games" after "Atari" on its logo and that Atari Games could not use the Atari brand at all in the consumer market (computers and home consoles). Atari Games retained most of the same employees and managers that had worked at the old Atari Inc. It was able to carry on with many of its projects from before the transition. Atari Corp., in contrast, froze projects and streamlined staff and operations. In 1985, the controlling interest of Atari Games was sold to Namco (a company with strong past ties to Atari Inc.), who soon lost interest in operating an American subsidiary. In 1986 a group of employees bought Namco's share.