Atari Losses Mount, Future of Publisher Looking Grim

After delaying for months their quarterly financial report, the reason has become clear: Atari today announced a net loss of $11.9 million for the three months ending on July 30.

By holding off on its recent quarterly report, and still missing the extended deadline by one day, Atari risks being delisted on the Nasdaq stock exchange.

The global video game publisher has been on the ropes for some time now. Facing growing financial instability, Atari recently grabbed up $10 million in credit to continue its operations into the holiday season. After selling off studios such as Shiny Entertainment, and many of its major properties like Driver and Stuntman, Atari may also now potentially lose its lucrative Dragon Ball Z license in a legal fight with anime distributor FUNimation.

The company's recent 2006 financial statement reported a staggering $69 million net loss over the fiscal year, leading Atari to state at the time: "The uncertainties caused by these conditions raise substantial doubt about our ability to continue as a going concern."