Atari looking to drop Cryptic Studios

[goblean]

"Cryptic Studios is accounted for as “Discontinued Operations” under IFR 5, as the Company has
decided to divest the studio"

http://www.atari.com/dyncontent/atar...20110517_0.pdf

Plus all the various financial details you care to know.

[Memnir]

Kinda curious where this leaves the next NWN iteration Cryptic was working on.

[sigtrent]

In utter limbo would be my take. Not only would it have serious funding challenges, it enters into legal limbo land since the licence is held by Atari. They may keep the game or they may sell the rights... who knows!

For turbine its a win. It would be extra interesting if WB buys cryptic which could certainly happen.

[LeslieWest_GuitarGod]

Atari is not "in it" for the gamers. They haven't been for years.

It's a cold hearted, green paper business.

[die]

**** i really was looking forward too the new NWN game..DDDDDDAAaaaaAaaaaaMmmmMMMMMnnnnnnnnn

[Symar-FangofLloth]

Well Cryptic is still going to exist, just not as part of Atari, right? So Neverwinter could still come out. Just with less coldhearted Atari overlords breathing down the necks of it.

[Elation]

Well Cryptic is still going to exist, just not as part of Atari, right? So Neverwinter could still come out. Just with less coldhearted Atari overlords breathing down the necks of it.

No it wont because atari owns the rights to it.

[Xaearth]

Well Cryptic is still going to exist, just not as part of Atari, right? So Neverwinter could still come out. Just with less coldhearted Atari overlords breathing down the necks of it.

You funny guy.

Atari still owns licensing rights to DnD video games. Even if Cryptic survives apart from Atari (that's assuming this isn't another stunt to maximize their profits and still plan on retaining full control of Cryptic Studios), they aren't big enough to stand up to Atari.

Remember the hell we went through when Turbine put their foot down? Even then it was shaky until WB got involved.
After getting the boot by Atari, Cryptic won't stand a chance.

[Bladedge]

Well Cryptic is still going to exist, just not as part of Atari, right? So Neverwinter could still come out. Just with less coldhearted Atari overlords breathing down the necks of it.

Unfortunately:
Cryptic still owns CO out right.
Cryptic still has the license to STO unless CBS studios decides to end their license early.
Cryptic is still developing NWN until Atari or Hasbro say other wise (Hasbro vs Atari lawsuit is still ongoing last i read). Cryptic still has to answer to and pay Atari for any NWN game that might be release.

[Symar-FangofLloth]

Atari still owns licensing rights to DnD video games. Even if Cryptic survives apart from Atari (that's assuming this isn't another stunt to maximize their profits and still plan on retaining full control of Cryptic Studios), they aren't big enough to stand up to Atari.

Oh, no, I realize Atari still has the rights. But being not-the-same-company might make it not as bad, after Atari got blasted once in lawsuits?

Or are you saying Cryptic is going to collapse? (None of their games are very good anyway IMO, and I don't particularly care if Neverwinter comes out or not).

[Shuleagh]

Cryptic is a trash gaming company. Champions Online and Star Trek Online were both terrible games. Glad it happened. Ideally now a gaming company with talent can make the new Neverwinter Nights.

[LeslieWest_GuitarGod]

MANHATTAN (CN) - A video game company claims Atari breached a licensing agreement for it to develop a new form of "Dungeons & Dragons." Turbine, the plaintiff, develops and operates "massively multiplayer online role-playing games," or MMOs.
Thousands of players can participate in an MMO and interact with each other simultaneously. The complaint in New York County Court alleges that Atari granted Turbine a sublicense to "Dungeons & Dragons" and "Advanced Dungeons & Dragons" so that Turbine could develop and operate a subscription-based MMO called "Dungeons and Dragons Online: Stormreach."

Turbine says it employed "dozens upon dozens of people working hundreds of thousands of hours" to do so. Turbine claims it spent millions of dollars on the franchise and continues to invest money to operate and maintain the service. Turbine claims Atari acted unreasonably in its efforts to promote and distribute "DDO: Stormreach," and failed to devote the necessary resources to it. It claims Atari breached the agreements by accepting payments - including future royalty payments - in return for extending their relationship and paving the way for the launch of Turbine's free-to-play "DDO: Unlimited" service, though Atari knew it would not perform its obligations under the agreements and knew it would pretextually seek to declare Turbine in breach of the agreements.

Turbine claims that Atari's purported "termination" was part of a strategy it conceived prior to the May 13 agreements that it would either terminate Turbine as part of a shakedown, or proceed with termination in bad faith to benefit from its own competing product at Turbine's expense.

Atari says Turbine invested millions of dollars in developing and promoting the DDO franchise to demand more consideration from Turbine than called for by their agreement. And it claims that Atari's purported termination of the license agreement, in addition to threatening Turbine's past investment, threatens the goodwill that Turbine has developed with the thousands of players who play "DDO: Stormreach" and are expected to use the "DDO: Unlimited" service.

---> The only "game" Atari makes for computers nowadays is "Shenanigans". Rated UC-13 for Up and Coming game, 13 Years in court.

[Bladedge]

With 2-3 games in development, 2 under preforming games and 2 years in the red, there will be some restructuring after or if someone buys cryptic or the studio goes the way of Realtime Worlds and FlagshipStudios.

[die]

Tuesday encounter is still going on on my facebook maybe no one told cryptic?https://www.facebook.com/home.php#!/NeverWinterGame

[Krell]

I think Warner Brothers should just buy Atari then do some housecleaning. Total market capitalization is 22 mill. Half that for a controlling interest. Time-Warner market cap is 37 billion. Might be cheaper than fighting them and pick up some license and intellectual property assets in the process. Shoot for the heart!

[LordPiglet]

Atari has probably done more to crush creative game development then EA

[Hafeal]

From the Atari web site, financial section:

DIVESTURE OF CRYPTIC STUDIOS- IFRS 5 DISCONTINUED OPERATIONS
In line with the previously stated strategy of fewer but more profitable releases and further expansion into casual online and mobile games, the Company has determined that external development creates more flexibility in the changing marketplace. Therefore, the Company has made the decision to divest itself from Cryptic Studios. The divestiture process is underway and more details will be provided as appropriate.

As of March 31, 2011, the Company accounted Cryptic as a “discontinued operation” in the Statement of Income starting on April 1, 2009 and as “assets / liabilities held for sale” in the Balance Sheet as of March 31, 2011.

On a standalone basis and after intercompany eliminations, Cryptic accounted for revenue during the second semester of approximately €7.2 million and on a full year basis of approximately €15.9 million as of Fiscal Year 2010/2011 – as compared to approximately €4.5 million and €4.5 million on the second half and a full basis for Fiscal Year 2009/ 2010, respectively. The net results of Cryptic was a loss of approximately -€3.3 million for the second semester and on a full year basis of approximately -€5.3 million as of Fiscal Year 2010/2011, as compared to a profit of approximately +€0.2 million and a loss of -€12.6 million on a semester 2 and a full basis for Fiscal Year 2009/ 2010, respectively.

Interesting, as the acquisition was unexpected as well when it happened *spacey look at sky - memory moment* ... I would guess Atari figured out making the games was a hell of a lot harder than profiting from the licenses (which has been their forte) based on their current strategy statement:

ONGOING STRATEGY
Atari’s strategy is continuously driven by four priorities:
(i) Focus on Atari owned franchises and key strategic licenses for fewer but more profitable releases and further expansion into online, digital download, mobile game segments. This is supported by a strict investment discipline addressing all appropriate platforms (online, console, mobile). At this stage, Atari’s games will mainly be developed externally with selected third party game studios to contribute to a more flexible and cost efficient organization. In addition, Atari will continue to support its key strategic licenses, including Dungeons & Dragons, Ghostbusters & Rollercoaster Tycoon.
(ii) Reinforcing licensing and franchise revenue streams through licensing of games and merchandising to continually leverage Atari’s strong catalogue of popular games and third party franchises.
(iii) Continuing to optimize operations, focusing at this final stage to adapt the overhead and the Research and Development expenses to Company’s the revenue and product strategy.
(iv) Setting up partnerships to support the Company’s development, publishing and distribution efforts to derive maximum benefit from its large portfolio of intellectual properties, its brand and its organization.

[LeslieWest_GuitarGod]

I think Warner Brothers should just buy Atari then do some housecleaning. Total market capitalization is 22 mill. Half that for a controlling interest. Time-Warner market cap is 37 billion. Might be cheaper than fighting them and pick up some license and intellectual property assets in the process. Shoot for the heart!

Boy to be a fly on the wall when WB brings in Vince McMahon to say to each and every Atari corporate brass:


Yoooooooooooooooooooooooooooooooooooooooooooooooou 'reee


Fired!!!

[Krell]

Ok, some further research shows French company Infogrames Entertainment (IESA) owned a 50% share in 2008 then bought out the rest to make Atari a wholly owned subsidiary. They then changed their name to Atari because of the name recognition. Atari trades on the Euronext exchange with a market cap of 69 mill euros or about 98 mill and includes games such as Test Drive Unlimited 2, Champions Online, Roller coaster Tycoon 3, Neverwinter Nights, and the classic Atari games.

Still, I think the same strategy still applies. Buy a 50% share and clean house .

[LordPiglet]

Rollercoaster tycoon 3???

Oh well, at least it's not farmland