Atari, creator of arcade classics Pong and Asteroids, has filed a petition for bankruptcy.
That's according to a new report by the L.A. Times
, which claims that Atari's North American arm has filed the petition in a bid to rid itself of its debt-addled French parent company.
Atari is, globally, not doing very well. Revenues have fallen sharply for two years running, profits have been small and its share price is now worth less than one euro, Polygon
It is this mess that Atari's US division is now trying to flee from - and its parent company's reliance on a London-based credit firm for cash.
Atari US hopes that by filing for bankruptcy it can "break free" and be reborn as a new company, focusing on mobile and digital platforms with little or none of its parent company's debt.
Atari is currently working on a new Pong game with Zynga, plus mobile versions of Rollercoaster Tycoon, Dungeons and Dragons, Centipede: Origins and Outlaw.