Monday, December 19th 2022

Atari Calls it Quits on the Atari VCS

What can only be summed up as one of the biggest failures when it comes to gaming consoles, the Atari VCS, is coming to an end, as Atari has decided to pull the plug. The company is said to have cancelled all of its "existing VCS manufacturing contracts", which means that after its current stock is sold out, it's unlikely that the company will make any more VCS consoles. The company is offering its current stock at a 20 percent discount, to anyone that would be interested in throwing away their money.

Atari's revenue from sales of the VCS and its accessories dropped from €2.3 million last year, to an abysmal €0.2 million this year, or a drop in revenue of 92 percent based on Atari's latest earnings report. This suggests that the company went from selling around a million units to selling around 10,000 units, based on the retail pricing of the VCS. Atari is apparently planning on launching new games based on its intellectual property, as well as getting into NFTs in the future, in addition to potentially licensing its brand to third parties for new hardware products. It would appear that history is repeating itself when it comes to Atari's success and not in a good way, as the company had a net loss of €5.4 million this year.
Sources: Atari, via liliputing
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54 Comments on Atari Calls it Quits on the Atari VCS

#51
trsttte
MacsnaponIt runs GTA V better than most Consoles on the market… and it cost less than half of what my gaming laptop cost me. A perfect solution to get my wife playing games together.
Bahhahahahaha, what? A dual core with 3 measly vega compute units runs GTA V better than most consoles?
MacsnaponAtari is basically an AndroidOS driven XBOX.
Wtf are you even saying?
MacsnaponAtari is only dead if no gamers want to code games for it. And those games can be played on any platform.
Oh no, Atari is dead because it seems to not be able to do anything remotely interesting other than re-selling the same old games over and over again on the nostalgia of the fans.



But hey, I understand I may be talking to some misguided PR firm so all I should say is there are better ways to do damage control for your clients lol
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#52
silentbogo
I'm surprised it took them that long. That's a third time they've surprised me.
First one was when Indiegogo succeeded after being kicked out of Kickstarter. Second time - when they made it as far as making actual hardware (thouhg there are some caviats here).
KenbokiThis article isn't exactly right. I've heard from people who work for Atari that they are not abandoning the VCS but are switching manufacturers. They are in fact starting to produce attachments for adthe VCS in the coming year. The VCS is not dead.
I think you aren't reading between the lines. End of current manufacturing contract means no more consoles. Maybe they'll sell a few accessories and trinkets along the way (for the entire audience of 2-3 thousand people), and that's it. The only bright side is that their tiny current ecosystem will exist, cause it mostly relies on existing services (antstream, and Atari's own products that will continue to be supported on other platforms will keep it afloat for awhile as a side effect).
Even if we disregard their abysmal sales numbers, there is still a myriad of reasons why new hardware won't happen.
Most notable ones:
1) they are still being sued by Tin Giant. At this point they won't be able to find a competent team of engineers that will do work for Atari knowing that they may not get paid.
2) Low volume. The reason they had to terminate their contract with ASKPCB is because they have not enough volume or cash reserves to fullfil their end of the bargain. Same goes for PowerA and their overpriced controllers. I think the only thing they can safely manufacture even in tiny volume, is that pesky "classic" controller.
3) Other manufacturers won't risk dealing with "Atari", and a modern motherboard isn't something you can just order a dozen or two off PCBWay or sumptin'
MacsnaponHow about doing the right thing and retracting this irresponsible, misguided and ignorant article about the Atari VCS?
I think we've woken up die-hard atari fans here... hold on to your hats, fellas! :D
MacsnaponIt runs GTA V better than most Consoles on the market… and it cost less than half of what my gaming laptop cost me. A perfect solution to get my wife playing games together.
I don't think you even own a VCS, otherwise you'd know the real performance. It costs as much as a generic ryzen 3 laptop, only runs much slower and has no screen or keyboard (and that's at current discounted price! At launch it was even less cost-effective). There can be no "optimisation" magic like in case of Switch, cause all it is - a mini-PC that runs mainstream OSes. Heck, even their glorified AtariOS is just a barebone Ubuntu that runs overlay written in Unity for f$#%s sake, just so they can play a few 3D animations, while 99% of the time it runs a chromium frame and web-apps... :D
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#53
lexluthermiester
silentbogoI think you aren't reading between the lines. End of current manufacturing contract means no more consoles.
Not true. Just because one run ends doesn't mean another can't begin.

Also, I was able to confirm with the manager of my local GameStop that the Atari VCS, while not flying off the shelves, has been selling at a steady rate. And people seem to like it. It is entirely possible that Atari is regrouping for a another run, with improved specs and library.
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#54
silentbogo
lexluthermiesterNot true. Just because one run ends doesn't mean another can't begin.
Don't kid yourself. If this year's financial results aren't an indicator, I don't know what is. They've made 3.5 times more $$$ from collapsing crypto than from hardware (neither is significant enough, since they still run at massive loss). Overall, since launch, it adds up to less than what they raised on Indiegogo(which only paid for R&D and prototyping), but let's not forget about angry investors (that's who really paid for Walmart&Gamestop campaign), angry partners, and now - unhappy manufacturers.
lexluthermiesterAlso, I was able to confirm with the manager of my local GameStop that the Atari VCS, while not flying off the shelves, has been selling at a steady rate.
You can thank scalpers for that. Many simply buy it because Pi4 and Pi400 was barely available throughout 2022, and 99% of buyers are getting those just for retro-gaming or HTPC purposes. Heck, I only got my hands on one Pi4 in November, and only for a few days (someone donated them to the army, I only set it up to do some useful stuff and played around for a couple of days).
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