Atari hardware revenues down 91% as VCS console significantly underperforms
Atari's hardware revenues are down 91% as the company reports losses of over 5 million Euros due to the underperformance of the newer Atari VCS console.
Atari's hardware revenues crash by 91% as the company suspends manufacturing of its VCS console.
Atari recently published its half-year earnings for the fiscal year ending March 2023, and the results show a substantial increase in total losses. The once-mighty gaming giant reported a heavy 91% reduction in hardware and "cartridge" sales (a curious term that isn't defined in the document), with this segment generating only 200,000 Euros (about $197,174). Atari notes the drop is because of the underperformance of the VCS console in the retail sector as well, and it should be noted that Atari has suspended production of the consoles and is expected to resume manufacturing in 2023.
According to the figures, Atari made more from blockchain (about 700,000 Euros) than it did from its video games hardware. As you'd expect, Atari makes most of its revenues from games, which includes three new titles that were released in the year as well as a vast library of catalog releases. Atari made 2.8 million Euros (about $2.71 million) from its Games segment. Total revenues were 4.3 million Euros as compared to 6 million Euros from last year, primarily because of the significant drop in hardware earnings.
Atari lost roughly 5.1 million Euros throughout the half-year period, an increase of 1.9 million Euros over last year. The primary reason for the increase in losses was larger expenses in the general and administrative segment, which grew to 4.9 million Euros as Atari transforms and adjusts its segments.
Moving forward, Atari will continue to focus on games and has secured a 10-year licensing renewal for the Roller Coaster Tycoon franchise. Other titles are also in development with external partners. Atari will also resume VCS manufacturing throughout 2023 as well.