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Atari acquires Rollercoaster Tycoon 3 from Frontier for $7m


CharlesEChuck

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Are the rights to Roller Tycoon 3 really worth that much? Maybe the consideration of having the rights to all things Roller Coaster Tycoon bumped the price higher than just what the game was worth.

 

Did Atari previously have the rights to this?

 

When I see how much they paid for this, I can't help but think they maybe could have spent that money on Battlezone.

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Looks like there's plans beyond just the game....

 

Atari will seek to develop new titles, expand digital and physical distribution, and explore brand and merchandising collaborations as part of a long-term plan to bring the franchise to new heights.

 

 

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39 minutes ago, brianchilders said:

Looks like there's plans beyond just the game....

 

Atari will seek to develop new titles, expand digital and physical distribution, and explore brand and merchandising collaborations as part of a long-term plan to bring the franchise to new heights.

 

 

Couldn't they do that with their existing RCT license?    

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2 minutes ago, zzip said:

Couldn't they do that with their existing RCT license?    

Wouldn't you want to fully own an IP before investing millions of dollars into it? Think about how awkward it is that System Shock 3 is owned by Tencent meanwhile the IP itself is owned by Night Dive ( and Atari by proxy ), it's  only natural that Atari wants full ownership of everything Roller coaster tycoon related before they go about revitalizing the IP.

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15 minutes ago, JPF997 said:

Wouldn't you want to fully own an IP before investing millions of dollars into it? Think about how awkward it is that System Shock 3 is owned by Tencent meanwhile the IP itself is owned by Night Dive ( and Atari by proxy ), it's  only natural that Atari wants full ownership of everything Roller coaster tycoon related before they go about revitalizing the IP.

I would think it only matters if there's something in the RCT3 license that's stopping Atari from fully utilizing the IP,   Atari has been releasing new RCT titles for years now.   So it's not clear what impediment they've had by not owning RCT3.   And if the RCT3 rights had power beyond the game RCT3,  then why did Frontier call their more recent theme-park sim "Planet Coast" instead of a more recognizable "Roller Coaster Tycoon 4"?  (it is a rollercoaster tycoon game in all but name)

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2 hours ago, Lord Mushroom said:

Sounds like an awful lot for a single old game. They are probably going to have Nightdive make a remaster, but at that price, I doubt it will be profitable.

 

A single old games that still makes over a million a year...

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42 minutes ago, zzip said:

I would think it only matters if there's something in the RCT3 license that's stopping Atari from fully utilizing the IP,   Atari has been releasing new RCT titles for years now.   So it's not clear what impediment they've had by not owning RCT3.   And if the RCT3 rights had power beyond the game RCT3,  then why did Frontier call their more recent theme-park sim "Planet Coast" instead of a more recognizable "Roller Coaster Tycoon 4"?  (it is a rollercoaster tycoon game in all but name)

I think what he is saying is that Atari would WANT to own everything, not have to own. I am sure whatever Atari puts into the Roller Coaster Tycoon franchise indirectly boosts sales of Roller Coaster Tycoon 3. Even if minimally.

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1 hour ago, JPF997 said:

Wouldn't you want to fully own an IP before investing millions of dollars into it? Think about how awkward it is that System Shock 3 is owned by Tencent meanwhile the IP itself is owned by Night Dive ( and Atari by proxy ), it's  only natural that Atari wants full ownership of everything Roller coaster tycoon related before they go about revitalizing the IP.

That makes sense. If this is the case, one would assume a Roller Coaster Tycoon announcement should be made before too long.

 

Still wish they would have bought Battlezone instead.

 

I am also still curious if Atari ever had this game. It could have been sold off in the 2013 bankruptcy proceedings.

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13 minutes ago, jeremiahjt said:

I think what he is saying is that Atari would WANT to own everything, not have to own. I am sure whatever Atari puts into the Roller Coaster Tycoon franchise indirectly boosts sales of Roller Coaster Tycoon 3. Even if minimally.

Well sure completeness is nice,  but does it make business sense?   If they can recoup the $7 million off this purchase through sales of the game and/or sales of an RCT3 remaster, then great!   But when I saw the headline, it sounded like they maybe they spent money on something they didn't really need and maybe that money could be better used elsewhere

 

12 minutes ago, jeremiahjt said:

I am also still curious if Atari ever had this game. It could have been sold off in the 2013 bankruptcy proceedings.

I'm fairly sure my CD copy of RCT3 had the Atari logo?  

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Admittedly, I stopped playing RCT after RCT 2, but maybe acquiring the rights to RCT3 is a way of avoiding the licensing fees to Six Flags, while retaining the ability to play those parks in a Night Dive studio rerelease of RCT3. Do the Six Flags parks still exist in the RCT2 releases that Atari sells to this day?

 

Quote

the game includes a licensed promotion by Six Flags to include their own content and scenarios based on five of their amusement park branches, including Magic Mountain, Great Adventure, and Over Texas. Walibi Holland and Walibi Belgium were also under the Six Flags brands during development and were also included.


Another feature is the ability to import coasters from previous games in the series into RollerCoaster Tycoon 3.

 

Edited by CapitanClassic
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29 minutes ago, zzip said:

If they can recoup the $7 million off this purchase through sales

 

4 mil out of pocket with an additional possible 3 mil earn out.  Similar to other acquisitions Wade has done.  Lessens the risk.

 

This game still makes a lot of money.  Wade just saw and seized the opportunity that Frontier needs cash.

 

From the French bourso (translated)-

 

One month before the launch of Warhammer Age of Sigmar: Realms of Ruin, the British studio Frontier Developments is in a delicate position which no longer allows it to continue with its current workforce.....joins the long list of companies that will not complete the year without going through restructuring. Already in the red at the end of a 2022/2023 financial year marked by a net loss of 24.2 million euros, Frontier now believes it will have to go through a restructuring to return to profits and regain a certain serenity. The objective is to reduce annual overhead costs by 20% through a hiring freeze, a reduction in expenses and, unfortunately, layoffs, the number of which has not yet been determined.

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14 minutes ago, PowerDubs said:

 

4 mil out of pocket with an additional possible 3 mil earn out.  Similar to other acquisitions Wade has done.  Lessens the risk.

 

This game still makes a lot of money.  Wade just saw and seized the opportunity that Frontier needs cash.

 

From the French bourso (translated)-

 

One month before the launch of Warhammer Age of Sigmar: Realms of Ruin, the British studio Frontier Developments is in a delicate position which no longer allows it to continue with its current workforce.....joins the long list of companies that will not complete the year without going through restructuring. Already in the red at the end of a 2022/2023 financial year marked by a net loss of 24.2 million euros, Frontier now believes it will have to go through a restructuring to return to profits and regain a certain serenity. The objective is to reduce annual overhead costs by 20% through a hiring freeze, a reduction in expenses and, unfortunately, layoffs, the number of which has not yet been determined.

Does it make me a bad person because I hope another English studio is in just as bad, if not worse, financial straits?

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I have been reading up on the situation between Atari and Frontier. Atari lost the rights in 2017 thanks to a lawsuit by Frontier alleging underpayment. I know Wikipedia can be wrong, but it could also be right.

 

Anyway, it sounds like Atari may have still owed Frontier over $2 million from underpayment on royalties.  If that is the case, Atari may have just made a heck of deal; paid money they owed plus extra to get the rights.

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37 minutes ago, jeremiahjt said:

I have been reading up on the situation between Atari and Frontier. Atari lost the rights in 2017 thanks to a lawsuit by Frontier alleging underpayment. I know Wikipedia can be wrong, but it could also be right.

 

Anyway, it sounds like Atari may have still owed Frontier over $2 million from underpayment on royalties.  If that is the case, Atari may have just made a heck of deal; paid money they owed plus extra to get the rights.

So they paid their fine + interest & penalties,  got their car back from the impound lot and are spinning it as "we just bought a new car!" ?   :)

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I guess it depends on if they have to continue paying Frontier roaylty payments. If they do, then this was probably just paying what they owe and returning to the previous agreement. It sounds to me like Atari took the game completely back, and will not have to pay Frontier any more royalty payments except for maybe the $3 million depending on the semantics of what the $3 million is for.

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I wasn't aware roller coaster tycoon really did all that well. It exists, sure, but even on a board dedicated to Atari I never see it discussed. The last one I bought still had Atari logos on it, but producing, or publishing, doesnt mean owning. Like in the early 00's era, atari logos were on dragon ball z and Godzilla games, and I know they don't own those.

 

Anyhow, seven mil is a bit high imo, hopefully they can at least recoup the cost of buying it.

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6 hours ago, Lord Mushroom said:

Do you have a source for that?

 

https://www.londonstockexchange.com/news-article/FDEV/trading-update-sale-of-publishing-rights/16401877

 

"Frontier has been publishing the game on PC, Mac, iOS and Nintendo Switch under the Frontier Foundry games label, generating profit (net sales receipts after deduction of all costs) of approximately US$ 1.5 million per year."

 

2 hours ago, Video said:

I wasn't aware roller coaster tycoon really did all that well. It exists, sure,

 

15th best selling PC game of all time.    Waaay ahead of many other games you may have heard of.

 

https://en.wikipedia.org/wiki/List_of_best-selling_PC_games

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46 minutes ago, PowerDubs said:

....and according to Wikipedia- that 10 mil sales shown is from a stat in 2015!

 

June 2015, Frontier CEO David Braben reported that the game had sold "more than 10 million copies"

 

How many more in the last 6+ years?

Could be less annually as interest often wanes, but could also be steady sales.

 

Given then uncertainties in the business, I hope they steer clear of controversies as they try further developements and try to let it be primarily a quality game based on providing fun for gamers trying to get better at mastering the game objectives. 


I don’t really doubt the RCT franchise is a major income-line for Atari, they therefore should do some realistic assessments in regards to how larger groups prioritize money and time when it comes to entertainment.

Guess, as to making money they want the game to be easily accessible and feel like ‘good-entertainment, nothing-more’ to as many people as possible.

 

But of course, that’s only my opinion.

 

Edited by Giles N
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