Atari CEO Resigns, Publisher Licenses Test Drive to Parent Company

New York-headquartered Atari announced the resignation of CEO David Pierce today following mounting losses that forced the company to secure a $10 million loan from Paris-based parent company Infogrames.

Infogrames recently initiated a restructuring plan for its subsidiary, which saw the ousting of several members of the board of directors. It's safe to assume Pierce's removal resulted from Infogrames' desire for drastic change as well, as chief restructuring officer Curtis G. Solsvig III has taken over as interim CEO while the company searches for a replacement.

Atari also announced its complete withdrawal from the production business, with the American company now focused solely on publishing and distribution. In light of this, Atari has given up the license for the Test Drive series of games to Infogrames for further development of the franchise. Atari received $5 million in advance royalties for the exchange.