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Atari Arcade Games is the first thing most people respond with when asked to name a classic arcade game maker. Atari Games Corporation was originally part of Atari Incorporated. Warner Communications sold the Atari Consumer division of Atari Inc. to Jack Tramiel in 1984. Jack took the computer and home game counsel division and named his new company Atari Corporation. The arcade coin-op division was renamed Atari Games. Agreements were made between Tramiel and Warner Communications that said the word “games” must always follow the word “Atari” on its logo. Atari Games could not use the Atari brand in any of its consumer market computers and game consoles.
The Atari Games Company
The Atari Games Company held an advantage over the Atari Corporation in that it did not suffer from the stresses of major restructuring concerns. Since it was retained by its parent company it was able to maintain work on prior accounts as usual. The Atari Corporation, on the other hand, suffered from staff layoffs and project freezing throughout the entire company. In 1985, Namco, a company that had strong past ties with Atari Incorporated gained controlling interest in Atari Games. A group of employees bought Nameco’s shares in 1986. Atari Games included a version of Tetris in their 1987 Tengen production of game cartridges for the Nintendo Entertainment System. This led to legal disputes with Nintendo, but it wouldn’t be the last time the two companies has disputes.
A controlling interest in Atari Games
A controlling interest in Atari Games was acquired once again by Warner Communications in 1993. This time the company was called Time Warner after Warner Communications and Time-Life merged their companies. Atari Games became a subsidiary of its Time Warner Interactive division. Atari Games retained its identity the new ownership. Tengen was removed from the works however.
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