Atari has recently acquired Digital Eclipse, a renowned game developer known for its retro game remasters such as Teenage Mutant Ninja Turtles: The Cowabunga Collection, Disney Classic Games Collection, and Atari 50: The Anniversary Collection. This acquisition is valued at $20 million USD.
The completion of the acquisition is expected to take place within a few days. Atari will initially pay a compensation amount of $6.5 million USD, consisting of $4 million USD in cash and $2.5 million USD worth of newly issued common stock. Furthermore, there is a possibility of additional compensation based on the performance of the acquired business, which could reach up to $13.5 million USD and be paid in cash over a period of 10 years.
According to the FAQs on Digital Eclipse’s website, the studio will retain its independence and continue to pursue projects with other companies, just as before. Digital Eclipse has several projects in the pipeline that are not tied to Atari games, and these projects will continue to be developed as planned.
One of Digital Eclipse’s forthcoming projects is the Gold Master Series, a collection of video game documentaries that combine retro games with remastered versions and various techniques used in those eras. The first game in this series, The Making of Karateka, was released on August 29.
Additionally, Digital Eclipse is currently working on the Digital Eclipse Arcade series and the remaster of the game Wizardry: Proving Grounds of the Mad Overlord. This acquisition by Atari may streamline the development process for these games.
Previously, Atari acquired Nightdive Studios, a game studio specializing in remastering games from the late 90s, for $10 million USD. Atari also acquired the retro gaming community Atariage earlier this year. Atari sees both Digital Eclipse and Nightdive as sharing the same DNA and aligning with Atari’s vision.
TLDR: Atari has purchased Digital Eclipse, a well-known game developer specializing in retro game remasters, for $20 million USD. The acquisition is expected to be completed in a few days, with Atari paying an initial compensation of $6.5 million USD. Digital Eclipse will continue to work on independent projects, including the Gold Master Series and Digital Eclipse Arcade. Atari’s previous acquisitions of Nightdive Studios and Atariage are seen as complementary to its vision.