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
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.
54 Comments on Atari Calls it Quits on the Atari VCS
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
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). 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' I think we've woken up die-hard atari fans here... hold on to your hats, fellas! :D 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
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.