Atari noted that this is a strategic move for the company. Not only will the bankruptcy help sever ties with their troubled French parent company (who saw their company share prices drop over 50% last year), this will also allow the company to secure independent funding for future game development.
In the future, Atari hopes to work towards building games for digital and mobile platforms. They are currently in the process of acquiring $5.25M in funding for the release of new games so the company can continue operations while in bankruptcy.
Last week, HMV announced that after 92 years in business, they too were filing for bankruptcy. Critics are noting that HMV`s bankruptcy was fully due to their lack of ability to evolve with changing times. Bankruptcy`s like HMV, and even Kodak for that matter, show the importance of continuous innovation and ability to adapt to changing consumer demands. It`s amazing looking back to how much social media has changed how companies market their product or service now vs 5 years ago.