Atari has acquired Nightdive Studios. What can we expect from this new partnership?

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Atari is pleased to announce the completion of the acquisition deal with Night Dive Studios.

With this acquisition, Atari will expand its extensive library of intellectual property and be able to leverage Night Dive's patented technologies and publishing capabilities to support Atari's retro-focused growth strategy.

Deal Information

Atari's decision to acquire Night Dive Studios became public on March 23, 2023. The deal was valued at $10 million, with half of the amount to be paid in Atari company shares.

Night Dive Studios &  Atari
Night Dive Studios & Atari

The community's reaction to this news has been somewhat skeptical, considering Atari's current state and its attempts to chase controversial trends like cryptocurrency and NFTs. However, one of Night Dive's executives stated that both companies share the same goals and that the studio will be able to continue working on beloved projects while maintaining its independence.

"We will keep moving forward. I've read a lot of comments on Twitter, and people were saying things like, 'Damn, now Night Dive won't be working on all those games' [...]. But we're working on them. We will keep doing as much as before—and even more."

In its press release, Atari acknowledged that one of Night Dive Studios' key successes is its in-house KEX Engine, which the studio uses to update classic games.

The KEX Engine is a proprietary cross-platform game engine framework originally created by  Nightdive Studios. 
The KEX Engine is a proprietary cross-platform game engine framework originally created by Nightdive Studios. 

"Our shared passion for preservation and innovation in retro games makes Atari an ideal partner, and our team is excited to take this next step," said Stephen Kick, CEO of Night Dive. "Atari's support will allow us to grow our business and expand our scope."

"Night Dive has an incredibly talented team, and they have earned their reputation as leaders in the retro game space," said Wade Rosen, Chairman of the Board and CEO of Atari. "Like their other fans, I'm looking forward to their upcoming releases, and I'm confident that we will help their business thrive."

Naturally, at this point, these are just words, and only time will tell what will happen in practice in the coming years.

How is Atari doing?

According to the financial report for the first half of 2022/23, Atari has experienced a decline in revenue related to the Atari VCS console. Revenues dropped by 92% compared to the previous year, from 2.3 million euros to just 0.2 million euros. The Atari VCS console was released in the North American and Australian markets in June 2021, but the planned launch in Europe in 2022 appears to have been postponed indefinitely.

Atari VCS
Atari VCS

According to the report, Atari plans to change its commercial strategy. It is expected that the production of Atari VCS hardware will be suspended for the year 2023. The company is also considering partnerships and licensing agreements. The second aspect can be understood in two ways: either the production of hardware will be outsourced to other third-party companies to reduce costs, or Atari will license its brand for use in other gaming systems.

The Atari VCS was intended as a response to the successful release of the Nintendo NES Mini, but initial reviews of the updated Atari console were less enthusiastic compared to Nintendo. Its high price, low build quality, and limited library of launch games received criticism. Perhaps the change in the commercial strategy involves releasing an improved version of the Atari VCS in the future, taking into account user feedback and responding to their demands.

How is Night Dive Studios doing?

Night Dive Studios specializes in restoring and reissuing classic games. They take on the task of adapting old Atari games to modern platforms, including PC, consoles, and mobile devices. This can involve improving graphics and sound, optimizing controls, and adding new features to keep the games appealing to modern players.

The employees have spent years working with the copyrights of abandoned games from many defunct publishers and developers that ceased to exist a couple of decades ago. This involved engaging in lengthy negotiations, sifting through archives, and reviewing thousands of legal documents. The studio also focuses on finding and restoring lost game artifacts, documentation, and other resources to preserve the history of video games and make it accessible to future generations.

Doom 64
Doom 64

One of Night Dive Studios' most well-known projects is the remaster of the game "System Shock." They acquired the rights to the original game and released an enhanced version, as well as developing a full remake of the game. They have also released remasters of other classic games, including "Turok: Dinosaur Hunter," "Strife," "I Have No Mouth, and I Must Scream," "Quake," and others.

In the end

Atari, being a major company in the gaming industry, has a rich catalog of classic games and intellectual property. They can provide Night Dive Studios with access to their brands and game licenses, allowing the developer to release remasters or reissues of their old games. Atari can also offer its resources and expertise in marketing and distribution to help Night Dive Studios promote and sell these games. The next release from Night Dive Studios will be the System Shock remake, which has recently been delayed until the end of May 2023.

System Shock
System Shock

Despite all the mixed factors of this deal, we hope that the collaboration between Atari and Night Dive Studios can lead to the reissue of classic Atari games with improved graphics and functionality, as well as the preservation of historical materials in the gaming industry.

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