"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 an earnings report.
Atari will continue to run and support Cryptic's MMORPGs Star Trek Online and Champions Online while it looks to sell the studio, Gamasutra says. Development on Neverwinter, Cryptic's co-op-oriented take on the D&D RPG series, will continue at least for now. Neverwinter was announced in August 2010, then slated to launch on PC in the fourth quarter of 2011.
Cryptic lost $7.5 million in the past fiscal year, though this was down from a $17.9 million loss the year before. The studio boasted that Champions Online's revenues increased by over 1000% after it went free-to-play in January 2011 but evidently this wasn't quite enough.
Cryptic community representative 'WishStone' took to the forums, explaining, "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 there are no planned changes to the way any of our games and projects will operate.
When Atari picked up Cryptic only 29 months ago, Atari CEO David Gardener commented that "This is exactly the type of company we wanted to acquire in order to build Atari for the 21st century." Short century.