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Atari struggles for survival

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Long before the PS2, the Xbox or the Wii, there was the Atari – the games console the pre-PC generation cut their teeth on and which gave them a glimpse of the promise to come. Now, however, it looks likely that yet another icon of a bygone era is set to ride off into the sunset.

Gameboy.com reports that Atari, which has weathered a very rocky couple of years, isn't sure whether it can recover from its current slide.
Last month Atari announced a change to an existing line of credit. However, Gameboy.com says, in its just-filed report for the first quarter of its fiscal year 2008, Atari said the maximum amount it can borrow through the agreement won't even provide the funding it needs to make it through the current holiday season. Atari management is looking for additional financing, though by the company's own account, there's no guarantee it will materialise.
"The uncertainty caused by these above conditions raises substantial doubt about our ability to continue as a going concern," Atari says in its filing. The publisher is considering another round of layoffs and suspended development on multiple games to save some money.
"The above actions may or may not prove to be consistent with our long-term strategic objectives, which have been shifted in the last fiscal year, as we have discontinued our internal development activities and increased our focus on online and casual gaming, among other things," the filing reads. "We cannot guarantee the completion of these actions or that such actions will generate sufficient resources to fully address the uncertainties of our financial position."
Gameboy.com says the filing was actually the publisher's belated quarterly report for the three months ended 30 June 2007. For the quarter, Atari brought in $10,42-million in revenues, down from $19,47-million for the same period the year before. It also saw its net losses spike to $11,94-million from the prior year's $7,30-million shortfall. At the end of the quarter, the company's total assets measured $34,99-million.