Atari 2010 Annual Report Download - page 6

ANNUAL FINANCIAL REPORT – REGISTRATION DOCUMENT
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• Revenues from console online games (Xbox and Play Station), potentially generating online revenues through
direct sales, micro-transactions, sales of add-ons or extensions, etc.;
• Revenues from mobile games based on Atari’s historical IPs sold via mobile phone platforms or applications
directories, potentially generating significant returns for a limited initial investment.
Atari’s games are developed internally in one of its in-house Studio (Cryptic in Los Gatos, California, and Eden in Lyon,
France), or developed externally at a variety of third party game studios...
Lastly Atari earns revenue from its intellectual properties by generating value from licensing activities and from joint
publishing projects.
2. AN EFFICIENT PLATFORM AND SHARED-SERVICE GROUP LEVERAGING ATARI’S BRAND AND
CUSTOMER SERVICES TO SUPPORT THE PUBLISHING STRATEGY
Atari’s publishing strategy benefits from an efficient platform and the company’s Shared-service Group, which provides
development and management of:
• Web-based meta-services: Atari has extensive experience with a full suite of online services leveraged across
all its games, such as the management of offerings and catalogs, user-generated content (UGC) services,
community, forum and contest management, specific game services, etc. These are key competences to offer
best-in-class service to consumers, support Atari’s commercial strategy and generate recurring online revenues.
• A web portal attracting, retaining and monetizing consumers: Atari’s brand is supported online by a unique, fully-
owned asset: the www.atari.com portal. This portal will become a key driver to develop traffic and revenues,
with the progressive availability of new Atari games as well as Atari classics spanning the entire history of
videogames (Pong, Missile Command, Asteroids, etc.).
3. CONTINUING TO OPTIMIZE OPERATIONS
To get the most out of available resources and offset a potentially protracted weakness in consumer demand, the
transition of Atari’s offering towards the online segment of the market is being implemented in close coordination with the
Company’s strict ongoing cost control program. Among other areas of focus, the cost control plan aims at better aligning
the Company’s revenue and expenses, notably through:
• Sharp reductions in overhead expenses, driven primarily by further staff reductions and reorganization, mainly
at the corporate and publishing level;
• The streamlining of the Group’s offices worldwide.
The Company is constantly exploring opportunities to develop commercial partnerships in order to derive maximum
benefit from its large portfolio of intellectual properties, its brand and all of its assets. Examples include the licensing out
of owned or controlled IP, entering into distribution or co-publishing arrangements related to owned or controlled games,
and distribution or co-publishing arrangements of third party games.
4. SETTING UP PARTNERSHIPS TO ENSURE THE COMPANY'S DEVELOPMENT
The Company is constantly exploring opportunities to develop commercial partnerships in order to derive maximum
benefit from its large portfolio of intellectual properties, its brand and all of its assets. Examples include the licensing out
of owned or controlled IP, entering into distribution or co-publishing arrangements related to owned or controlled games,
and distribution or co-publishing arrangements of third party games.