Atari Looking to Dump Cryptic

Dinendae

Ran across this by accident, but I can't say that I am surprised: Link

I wonder what this means for the new NWN game they are making?

 

"In line with the previously stated strategy of fewer but more profitable releases and further expansion into casual online and mobile games, the company has determined that external development creates more flexibility in the changing marketplace," Atari explained in its financial report. "Therefore, the company has made the decision to divest itself from Cryptic Studios. The divestiture process is underway and more details will be provided as appropriate."

You know, they keep using that (yellowed) line but it hasn't been working for them. Atari's problems ran deep before they acquired Cryptic, and will continue on after Cryptic is gone. Cryptic didn't help matters, but I don't see dumping Cryptic as being some magical save for Atari.

ktanner3

So who controls STO after this move? Atari or Cryptic? 

Dinendae

Originally posted by ktanner3

So who controls STO after this move? Atari or Cryptic? 

 Give me a moment, and I'll pull the relevent part from the new financial report.

SirLorn

http://forums.startrekonline.com/showpost.php?p=3543592&postcount=5

 

"The headline is chosen a little unfortunate by the colleagues at Gamasutra and makes it sound like we're a kicked puppy standing in the rain. That's not the case. 

Right now I have no further details other than what has been mentioned elsewhere. Support for Champions Online and Star Trek Online will be continuing as normal, our staff is working hard on their projects (and the folks from the Champions team deserve an extra cheer for their new stuff by the way) and there are no planned changes to the way any of our games and projects will operate.



So Stormy is here, I am here, Dan and the gang are here, your GMs and QA staff are working hard. It sounds way more dramatic than it actually is."

Dinendae

"DIVESTURE OF CRYPTIC STUDIOS- IFRS 5 DISCONTINUED OPERATIONS

 

In line with the previously stated strategy of fewer but more profitable releases and further expansion into casual online and mobile games, the Company has determined that external development creates more flexibility in the changing marketplace. Therefore, the Company has made the decision to divest itself from Cryptic Studios. The divestiture process is underway and more details will be provided as appropriate.

 

As of March 31, 2011, the Company accounted Cryptic as a "discontinued operation" in the Statement of Income starting on April 1, 2009 and as "assets / liabilities held for sale" in the Balance Sheet as of March 31, 2011.

On a standalone basis and after intercompany eliminations, Cryptic accounted for revenue during the second semester of approximately €7.2 million and on a full year basis of approximately €15.9 million as of Fiscal Year 2010/2011 – as compared to approximately €4.5 million and €4.5 million on the second half and a full basis for Fiscal Year 2009/ 2010, respectively. The net results of Cryptic was a loss of approximately -€3.3 million for the second semester and on a full year basis of approximately -€5.3 million as of Fiscal Year 2010/2011, as compared to a profit of approximately +€0.2 million and a loss of -€12.6 million on a semester 2 and a full basis for Fiscal Year 2009/ 2010, respectively.

The results of Cryptic for both periods have been restated and included in the line "profit and loss from discontinued operations.""

 

I am guessing here that that would be up to Atari itself, since it still currently owns Cryptic Studios and all the properties, and CBS (I am guessing) would have some say on if the game could be sold to another party or not. That should have been covered in the original contract, though it might not matter to CBS as long as they get their cut from the game; after all, if I remeber the sequence of events correctly, Cryptic picked up the Star Trek IP before Atari bought them out.

 

 

 

 

 

 

DLangley

Since there is already a News item on this topic, Ill be locking this up. Thanks!