Atari Financial Report Haven't even opened it yet... time to pour a cup of coffee. $ALATA $PONGF

[Flojomojo]

2 hours ago, Lord Mushroom said:

That is one way of looking at it. An alternative view is that he is using his dad´s money to buy and play with toys. The proof is in the pudding, and the pudding is the financial results. It is too soon to say whether or not Wade Rosen´s Atari is a failure, but early signs are bad.

I assume Irata LLC = Wade Rosen's wallet. Don't underestimate the "Goodwill" portion of their balance sheet, which incorporates the value of the acquisitions as well as the lack of impairment that was dragging down the Fred Chesnais era of Atari. I will never share p-dub's ridiculous cheerleader perspective on this company, but as an enthusiast, I like it when they make interesting things that I and many others might like to buy. 

 

Like @Warboss Gegguz says, they need to spend money to make money. Their pivot from crypto to web3 is silly but so long as it's not the whole company, I can see why they want to mention buzzwords that investors might appreciate. 

 

The Deloitte auditors must know what they're doing when they rate "goodwill" at close to 12 million euros. 
https://www.investopedia.com/terms/g/goodwill.asp#:~:text=Shown on the balance sheet,than its net asset value

[82-T/A]

3 hours ago, Nall3k said:

I would suspect they are going to sell what remaining stock they have, and maybe release games until the end of 2024. That would be a four year run, which is decent for a micro console that doubles as a PC device.

I would hope they continue to support the platform... as in, maintain the connectivity and ability to put games on there. This is one of the reasons I keep saying they need to OpenSource the OS. I don't expect there will be a million-plus people downloading it and buying games... but with effort, it can compete or remain deficit neutral if people can download it (as they would Antstream) onto any PC and use it. But this is all speculation... they're supporting it, and that's all we can ask for, and I continue to buy games for it.

[Giles N]

5 hours ago, Lord Mushroom said:

 

I also don´t think they should have made all those purchases they have made. With the exception of the one they bought on auction, I think they were all unprofitable investments.

 

Bottom line, any (expected) profitable ideas that don´t hurt the brand should have been done, and nothing else. At worst, that could mean just licensing, but it is better to make a small profit than a loss.

There are things I have so little insight of gut-feeling for, I’ll leave them out: atari hotel branding and web3 etc.

 

Beside that, I think (I cannot be sure) their major focus and investments in the gaming area are really spot-on. 
 

Their acqusitions of DE and ND makes perfect sense if retro-gaming is their chosen (re-)starting point, and also buying back things that can bringer closer to having a historically meaningful IP catalogue isn’t illogical.

 

Perhaps they’ve spent too much money in a short time-window, but you cannot get anything produced without the necessary production-means.

So perhaps they went in too hard, but not in my esteem, on wrong things.

 

What I could see them do better is the execution of new releases; Recharged series more up-to-date in depth and content, and games like Mr.Run and Jump and Haunted House to stand out from the crowd in ways that’d both retain a retro-type core-gameplay, but make them less generic and have more them to do and see. 
Mr.Run and Jump for 2600 looked like an average platformer.

Modern version looks stylish in a certain sense, but [I have my concerns, lets say, if they want to reach every 2D platform-loving gamer out there…, this topic for later]
 

As for the release of 2600+ I’d say it’s a very logical and welcome move.

No production is free. The cost’s are an investment.

It’s the execution that seemed a bit rushed or not sufficiently well-researched, pulling down review-scores and thus not making the impact it could have had.

 

But if they get the firmware-updates to run close to 100% of 2600 and 7800 games during 2024 (but they shouldn’t wait or delay this), they’ve probably succeded in putting into production a very useful thing to come back to the retro-gaming market.

If they’d gotten the best emulation installed right away - and reviews would’ve been mostly 9 or 8,5s etc, it could’ve really been a killer.

 

Using money must sometimes be in the area of investments so to build-up prior to getting the revenue.

 

From a gaming-company perspective I don’t see any wierd or strange major choices, - only lacking or suboptimal execution of things.

 

I’m of course open to hearing views contra to mine, and why I may be just way-off target here. 

[Giles N]

Edit: deleted due to  double posting

Edited December 13, 2023 by Giles N

[Video]

Yeah Atari has/is acquiring a lot of valuable ip atm, but how they use it is going to determine wether its a good move or not. A quick turnaround of more collections released on various consoles should give a quick boost in revenue, and I suspect well see some new releases over the next year.

 

I've always loved Atari and hope this does well for them, they are slowly bringing awareness out (outside the Atari community) just hopefully there is interest being generated with that awareness.

[Flojomojo]

@Giles N I agree with you in terms of logic and fan appeal. I have no idea if or how these moves translate into financial success, though. Atari era retro stuff is not in style and there are real limits to the appeal of these products with younger people. I know this because I'm an old fart who is out of touch with mainstream tastes. 

[Giles N]

1 hour ago, Flojomojo said:

Atari era retro stuff is not in style and there are real limits to the appeal of these products with younger people.

Yeah, - and that’s why the Recharged and Remake-series/releases may need to invent or introduce some new elements that makes them much more accessible to younger gamers, while not be so completely changed as to be unrecognizable.
 

Exactly what types of elements that should be, and that don’t call for a triple-A production or global community-server-drifting 24/7, may be a really, really important nut to crack here (for Atari).

 

It’s a generation that would feel it as natural to build a giant 2600 console in a Minecraft-type game, share with others and then have it play mini-games within the Minecraft-styled world, as building or assembling a physical Lego 2600 console.

 

Finding low-cost game-elements to make them interested, would be key here.

 

On portable smart-devices I think games that has lots of levels, lots of eye-candy graphics - and a steady build up of extras, bonuses and unlockable things to boost and enhance gameplay, - but with individually very short play-sessions, can go a long way.

If extras and bonuses can be recombined to surprising new things, its even better. 
 

- - -

 

Many popular Steam games under $20 are games that are farm-gsmes, rpgs, classic shooters on cheapo, games with a combo of strategy and action (knight and castle games).

 

Atari - if they explored and tested out demos, could probably make quite a lot out of many of the original franchises if they just made the graphics much more 2023, not ‘faux-vector’ (unless the game-setting naturally calls for it).

If they’d dared to move the core-gameplay into a more modern type game, and add and expand upon their original classics, guess they could reach out to youngsters.

Having a classic mode doesn’t hurt, as it keeps the oldschoolers buy it too.

 

 

Let’s say you take a game like Warlords, and you don’t think like ‘its a classic never-ever to be changed or messed with’, stuff that and makes Warlords 2, call it whatever you want.

Beware, brave reader - long and arduous read ahead!!

 

You can choose between light, medium or strong castle build, and small-fast, medium-even-paced or slow big shield… as a start.

 

A start. From there you can expand your defensives to have multiple shields, castles of multiple-layers and many materials, gain money of points to buy upgrades, - number of things bouncing between castles as projectiles are of many shapes, sizes with lots of effects - freezing, burning, exploding, - even the dragon itself can get unlucky and become something that ends up being bounced and deflected between castles… which on a larger area that zooms out goes up to 6, then 8 - and as shields get boosted they also get firepower, and the castles can get restore-wall functions which rebuilds cracks while action is going on.

As you proceed you buy armies, monsters, cannons, even gather the ruble from the defeated enemy castles as projectiles to send at your opponents.

You unlock smartbombs like ‘volcanic eruption’, ‘earthquake’, ‘cataclysmic flood’, ‘meteorite strike’ which have this or that percentage of precision - completely at the users risk.

 

And very little limits to how much you actually can fortify and arm your castle as you spend points - all of course to point of the ridiculous with humorous graphics of cannon balls, dragons, soldiers, shields, castle-rubble flying monty python crazy between the castles … 

As you win battles you don’t end game session and restart; you keep building your castle-team with more hilarious elements of defensives and armory.

 

Now… I can sort of hear some out there that just don’t want anything Warlords to be like this.

But they have their Warlords:Arcade and 2600 (and 5200 with, well, another name).

 
Which means there should be room for a Warlords 2, or ‘Charge of the Warlords’ anno 2023/24 standards with a myriad of game-elements to collect, buy, master, install, tweek, - and with funny, colorful, vibrant graphics and animations and very, very medieval music (but strangely thumping to dramatic melodies) … yes, and did I mention some humor? The dragon after having seen the fight flies in, declares the winner of the round and shakes it head after enough rounds of battles, on round 33 it seen in the upper corner watching eating snacks…

 

Edited December 13, 2023 by Giles N

[Lord Mushroom]

7 hours ago, Flojomojo said:

The Deloitte auditors must know what they're doing when they rate "goodwill" at close to 12 million euros.

Since the purchases are so recent, I think those figures are simply the difference between the purchase price and the total value of the assets in the purchased companies.

[PowerDubs]

8 hours ago, Flojomojo said:

 I will never share p-dub's ridiculous cheerleader perspective on this company, but as an enthusiast, I like it when they make interesting things that I and many others might like to buy.

 

 

Hey... I'm just happy this thread exists- you guys are all interested... sink or swim- we are having fun.

 

My personal belief- just a tidbit- System Shock on PC did great... when it hits consoles soon..and Star Wars drops everywhere in Feb...  the report in June will be one to watch.  As noted in the report- NightDive gets an earn out- but that is capped... I expect that cap will come relatively soon.   The report also did NOT have any 2600+ presales in it.  On purpose.  Atari voted in Sept to do a buy back and burn.  SO- just like the last couple year period of Wade buying as much stock and control of the company as possible- the low share price (by many methods) is intentional.  If Atari is about to buy back- it makes sense...same as it did for the last 2 years of his 50.xx takeover of the company.

 

But - with Wade holding 50.xx of the company- out of his own pocket- and Nightdive / Digital Eclipse holding lots of shares...it is in their best interest to grow the company...and the share price.

 

Call me crazy...  but I'll keep buying more shares. 

 

You are welcome to just keep watching / talking...it's all fun. 

[Lord Mushroom]

4 hours ago, PowerDubs said:

But - with Wade holding 50.xx of the company- out of his own pocket- and Nightdive / Digital Eclipse holding lots of shares...it is in their best interest to grow the company...and the share price.

 

Call me crazy...  but I'll keep buying more shares. 

On the flip side, losses could continue, borrowing from Irate could continue (in fact it will, according to the financial statement) and Atari finds itself with loans it can´t repay. To avoid bankrupcy, the loan(s) to Irata are converted into shares at a microscopic share price, and existing shareholders lose almost everything. 

 

The next quarter is going to be crucial. If they can´t turn a profit in that quarter, where everything is in their favour, it is all over. I think they will turn a profit, though, but I don´t think it will be big enough to suggest a healthy future. I think they need to make at least $2 million in that quarter. More than $5 million, and I am back to being an optimist.

[Giles N]

3 hours ago, Lord Mushroom said:

On the flip side, losses could continue, borrowing from Irate could continue

Thinking of first half of 2023, I wonder exactly where the great income/profit sources should’ve come from?

 

I mean - besides Mr.Run and Jump and some other modern game-titles, all the significant production-output has happened this fall.

 
Almost every significant thing reported are concerned with investments.

 

What could they have done during first half of 2023 to make more money or loose less, while still building up line-up of production means?

 

The only thing that easily comes to my head (true to form I guess), would be to get the game-designs for the modern games more commercial or hit broader, which are game-design choices.

 

What do you think they should’ve done with the VCS, with web3, using the brand (I’m unsure I’d get sn interest in playing Pong, of using money on Pong just watching some Porches scrapping it out of whatever they did. What a cool modern Pong should’ve looked and felt like if I was to buy and play it, comes a lot easier to me).

 

How should they’ve spent money, not spent money in this period to get the economy running better in your view?

 

Reason I ask is because you (and others here) seem to think about some share and stock ins- and outs- that I’m not into at all.

 

Moreover, I had an expectation from Ataris statements that they were mostly buying and producing stuff in this period. 
I really wouldn’t expect a report to say very much than that, if thats was on their program…

 

Sure, I’d really like to see sales-numbers of their different games, just to have some clue to what sells more and what sells less, but it seems they got a lot of games-revenue from obtaining NightDive, and I’d guess that will both continue and expand with more titles?

Did they get any revenue from Digital Eclipses non-Atari releases?

 

Bottom line: I felt they took some of the profits from the 50th Anniversary and wanted to do lots of investments so to be able to actually get production ramped up (later ‘23 and onwards).

 

I think that how they manage the 2600+ is very important.

They did loose quite a lot I think to a somewhat mediocre start, which may have been avoided with better research.

They plan on four more games for the 2600/7800 early ‘24; they really ought to make it an occasion for ‘damage-control’ of the suboptimal release (imho).

 

 

Edited December 14, 2023 by Giles N

[Lord Mushroom]

49 minutes ago, Giles N said:

What could they have done during first half of 2023 to make more money or loose less, while still building up line-up of production means?

It is limited how much they could have improved the result by actions in 2023 alone. But they could have increased their efforts in licensing, and dropped any (expected) unprofitable developments and investments.

 

I would also imagine that administration expenses could be lowered dramatically. They were reduced by $1 million in that half year, but I think it is still at $3.9 million.

 

Wade became CEO in April 2021, though, so he had more time to make 2023 a good year. 

57 minutes ago, Giles N said:

Moreover, I had an expectation from Ataris statements that they were mostly buying and producing stuff in this period. 
I really wouldn’t expect a report to say very much than that, if thats was on their program…

They lost $5 million before debt payments, and that doesn´t include the money they spent on purchases. Research & Development increased from $2.3 million to $3.3 million, and that is only because Nightdive Studios has been included in the figures (Nightdive also contributed $2.7 million in revenue). So even if there was no research and development, they still would have lost $1.7 million. Not exactly a good sign.

 

1 hour ago, Giles N said:

it seems they got a lot of games-revenue from obtaining NightDive, and I’d guess that will both continue and expand with more titles?

Nightdive released the long awaited System Shock game on PC in this period. In other words, Nightdive contributed a lot more in this period than it will in an average period.

 

1 hour ago, Giles N said:

I felt they took some of the profits from the 50th Anniversary and wanted to do lots of investments so to be able to actually get production ramped up (later ‘23 and onwards).

Atari´s financial position doesn´t affect their level of investments much these days. They just borrow money from Wade to spend on whatever Wade wants them to spend on.

[Flojomojo]

12 hours ago, PowerDubs said:

Call me crazy...  but I'll keep buying more shares. 

 

You are welcome to just keep watching / talking...it's all fun. 

I was unaware that we had to check with you before sharing our personal opinions. Thank you for your generosity. 

 

Atari stock is selling for eleven cents a share. A fella could buy a lot of shares at that price. I’ll be sticking to games (only).

[Warboss Gegguz]

2 hours ago, Flojomojo said:

I was unaware that we had to check with you before sharing our personal opinions. Thank you for your generosity. 

LOL!

 

2 hours ago, Flojomojo said:

Atari stock is selling for eleven cents a share. A fella could buy a lot of shares at that price. I’ll be sticking to games (only).

I was gonna say, I didn't know we were here to talk investment. Was more concerned about the company succeeding since I like their products rather than wanting to make money.

Though I guess that does explain the copium I get when I talk negatively about weird financial decisions, lol.

 

I'm out here saying they should refocus on not gamble on trends because I just assumed we all actually cared about the company rather than making bank on them either sinking or swimming.

I mean, I should've figured the crypto shit would draw in that kind of crowd (whom I'll just refrain from going into my opinion on) but still, pretty lame.

[PowerDubs]

6 hours ago, Giles N said:

Did they get any revenue from Digital Eclipses non-Atari releases?

 

 

 

Digital Eclipse was acquired after the period ended.

[PowerDubs]

4 hours ago, Lord Mushroom said:

 

 

Nightdive released the long awaited System Shock game on PC in this period. In other words, Nightdive contributed a lot more in this period than it will in an average period.

 

System Shock has yet to launch on consoles.

 

Turok released this period we are in now.

 

Star Wars will release in Feb (still this period)

 

NightDive's contribution on the June report will make this last report look meaningless.

 

I would expect their projects to continue to grow.

[Giles N]

2 hours ago, Warboss Gegguz said:

I'm out here saying they should refocus on not gamble on trends

I think I agree to the general drift here…

 

(I was about to crack the dry joke of saying ‘gamble - isn’t this a gaming-company?’… but, could be interesting to see an iteration of Atari actually surviving for more than 5 years etc, and I don’t think mindless trend-surfing will do anytime, anywhere. Gotta deliver quality to the best of ones ability)

[Warboss Gegguz]

18 minutes ago, Giles N said:

I think I agree to the general drift here…

 

(I was about to crack the dry joke of saying ‘gamble - isn’t this a gaming-company?’… but, could be interesting to see an iteration of Atari actually surviving for more than 5 years etc, and I don’t think mindless trend-surfing will do anytime, anywhere. Gotta deliver quality to the best of ones ability)

I love shitty jokes so feel free, lol.

And yeah, while I think the hard pull out of the mobile market was a bad idea (mainly because the titles they made failed because they were fucking terrible, not because it's not a profitable venture) but overall I prefer the direction things are headed vs. where they were not even 5 years ago.

 

I just can't comprehend why they failed at making the most obvious mobile games ever. Like, how about missile command with touch controls? Or an auto-shooter centipede a la gridrunner? or a Magic Survival style take on Asteroids or Black Widow? All with either ads between rounds or a one time purchase that lets you opt out of them?

Nah, Crystal Castles and Ninja Golf Mobile! THAT'S what'll bring in the big bucks! (no offense to Bently or Ninja Golf, it's just... why?)

The only understandable one was Rollercoaster Tycoon if only because city management/builder games what consist mostly of waiting for nothing are huge on mobile, but I guess they found some way to screw that up.

[Giles N]

35 minutes ago, Warboss Gegguz said:

Like, how about missile command with touch controls?

Well, they have this at least^ …(now)

 

Fairly playable with something akin to the neo-retro looks of the Recharged series.

Edited December 14, 2023 by Giles N

[Giles N]

43 minutes ago, Warboss Gegguz said:

not because it's not a profitable venture)

I think many of the old arcade-games would have a more natural place as mobile-timekiller-games, than as massive console-undertakings… (but both could be seen as doable)… akin to such sinplified gameplay-styles you describe.

Done well, they could get ‘out there’ to younger gamers via short and simple action-games…

Edited December 14, 2023 by Giles N

[Warboss Gegguz]

1 minute ago, Giles N said:

Well, they have this at least^ …(now)

 

Fairly playable with the something akin to neo-retro looks of the Recharged series.

Was gonna say, the articles I got linked said it was like everything BUT their arcade library got ported.

Meanwhile you look at Namco and Taito putting out mobile games that are critical and commercial smash hits... though for some reason they delisted Space Invaders Infinity Gene and I will forever be bitter about it.

[Warboss Gegguz]

2 minutes ago, Giles N said:

I think many of the old arcade-games would have a more natural place as mobile-timekiller-games, than as massive console-undertakings… (but both could be seen as doable)

I know you replied in the middle of me responding, but again, that's what Taito, and Namco do with their legacy IPs.

Pac-Man 256, Galaga Wars, Groove Coaster, Bust a Move Journey... formerly Space Invaders Infinity Gene. But, to be blunt, that's because they're managed by companies that actually know what they're doing. Well, Namco at least. Squenix IDK but that doesn't seem to have hurt Taito thankfully.

Not that they didn't try making their IPs into big AAA-style games (Space Raiders will forever have a special place in my heart for how absurdly schlocky and stupid it is). And pacman has been everywhere, albiet to much greater success. 

 

And then there's the GIANY Laundry list of freemium Sega Classics.

[Giles N]

1 hour ago, Warboss Gegguz said:

Meanwhile you look at Namco and Taito putting out mobile games that are critical and commercial smash hits...

Precisely…!

1 hour ago, Warboss Gegguz said:

Laundry list of freemium Sega Classics.

Exactly…!

 

1 hour ago, Warboss Gegguz said:

But, to be blunt, that's because they're managed by companies that actually know what they're doing.

Yes…
 

- - -

 

Let’s hope Atari, as it is run now, do what they can to stay focused and sharp.

 

Not ‘being there yet’, isn’t what I’m talking about: from very little, scraps, it may take time, energy, effort and money and what-not, to do a comeback, but, please,refrain from letting everything drift! Please don’t let the focus stray, and don’t let strange decisions be the rule. Keep to the point. Learn from past mistakes (of the many Atari-iterations), and learn from past successes, yes, even other companies successes.

 

And of course checking in with the gaming-community isn’t stupid either…

Edited December 14, 2023 by Giles N

[Lord Mushroom]

9 hours ago, PowerDubs said:

 

System Shock has yet to launch on consoles.

 

Turok released this period we are in now.

 

Star Wars will release in Feb (still this period)

 

NightDive's contribution on the June report will make this last report look meaningless.

 

I would expect their projects to continue to grow.

Maybe I was too pessimistic about Nightdive´s future contributions, but the previous owners wouldn´t have sold it for $10-20 million if they expected it to make $2+ million per year.

 

I read an interview with the Nightdive boss, and he said their past projects (probably didn´t include the latest System Shock) as profitable. So Nightdive is currently the most promising part of Atari. I do think they will struggle more and more with profitability as they scale up, though.

[+jeremiahjt]

1 hour ago, Lord Mushroom said:

Maybe I was too pessimistic about Nightdive´s future contributions, but the previous owners wouldn´t have sold it for $10-20 million if they expected it to make $2+ million per year.

 

I read an interview with the Nightdive boss, and he said their past projects (probably didn´t include the latest System Shock) as profitable. So Nightdive is currently the most promising part of Atari. I do think they will struggle more and more with profitability as they scale up, though.

I think part of the sale going through was because Wade Rosen had significant stock in Night Dive.