Atari’s earnings drop during first half of the year

Atari has released a financial report for the first half of their fiscal year and, with an earnings drop of 60 percent, the news isn’t pretty. The company isn’t in distress, however, as they say this drop meets its expectations due to the selling of “fewer but more profitable games.”

Atari also attributes the downturn in revenue to their making a “strategic shift towards online/casual/social gaming.” This is evident in the fact that income from online gaming – subscriptions and digital distribution – made up over 43 percent of the company’s total net revenue. This is up from last year’s 2.6 percent for the same period.

On the flip side, retail earnings performed just the opposite, bringing in only 56 percent of the Atari’s total income for the first half of the year, compared to last year’s 97 percent. While the company admits that the retail market was  “softer than we anticipated,” not having a huge game like Ghostbusters: The Video Game releasing across all platforms was a major factor as well.