HASBRO AND ATARI:
THE STORY SO FAR

by Brian Rittmeyer


Hasbro & Atari Logos
It's a fact the die-hard Atari community can't understand or accept -- the general public has long since forgotten Atari.

They can't remember the once mighty empire that brought video games home in the late 1970s and early 1980s with the 2600 Video Computer System. And as far as they're concerned, there are only two Jaguars -- the cat and the ones that have four wheels. Pushed aside by the likes of Nintendo, Sega, Sony and personal computers with 3D acceleration, Atari's early days are ancient history; its later days known only to loyalists and, much like David Hasselhoff's music career, more successful outside America. But then something funny happened. Perhaps spurred the most by those in their late 20s and early 30s, a new phenomenon emerged -- "classic" or "retro" gaming.

Is it a fad, a trend or is it here to stay? Such questions over the phenomenon weren't enough to dissuade Hasbro Interactive from picking up Atari's bruised and battered remains, along with the rights to 75 classic titles, for a cool $5 million from hard drive maker JTS Corp. in March 1998.

"Atari has been irrelevant in the gaming industry, but Hasbro is going to change that," said Jayson Hill, manager of public relations for Hasbro Interactive in Beverly, Mass.

THE "STEAL OF THE CENTURY"

Pong
Pong

The significance of Hasbro Interactive's purchase of Atari might be compared to finding a rare 2600 cartridge at a yard sale -- it might be worth hundreds to the collector who knows what it is, but it's only worth a buck or two to the dealer. While most of the public might have taken the news as unremarkable, or maybe even forgettable, it was mindboggling to Atarians, including John Hardie, 34, of Valley Stream, N.Y. "That should go down as the steal of the century," said Hardie, a cable splicer for Bell Atlantic who helped organize the recent Classic Gaming Expo in Las Vegas and has a hand in running the Atari Gaming Headquarters Web site. "The users could've gotten $5 million together and bought it themselves."

But why would anyone be interested in buying the rights to a forgotten company that the public would have to be sold on all over again? For starters, Hill said Hasbro Interactive bought Atari because JTS offered it to them. "We figured the name still had a lot of equity in it, even if not much had been done with it in a while," Hill said. "There was a wonderful catalogue of games." And further, "We believe that retro-gaming is here to stay."

Missile Command
Missile Command

But Hasbro wasn't the only potential buyer. Don Thomas of Manteca, Calif., a well-known Atari employee from 1989 to 1995, said he had suggested buying Atari to, of all companies, Sony. "For a number of reasons, Sony had no interest in that area," said Thomas, 41, now in charge of peripheral licensing for NUON at VM Labs. "Sure enough, not too long afterwards, it was announced Hasbro had acquired it for $5 million." There were still more potential buyers, but Thomas, lacking first-hand knowledge, declined to reveal all that he knows. "I think the fans of Atari, whether they know it or not, are best served by Hasbro," he said. "It's easy to forget there has to be a business model to keep the brand going. Hasbro has the right model."

But not all Atari fans would agree. For those like 19-year-old Fard Muhammad of Chicago, Atari can not be said to be saved unless its name appears on hardware as well as software. While Hasbro may have saved Atari from oblivion, the company "has downgraded Atari from the company that it once was to a third party company slugging out old games for new systems," Muhammad said. "Hasbro is changing the Atari name from an American institution to a retro-gaming marketing gimmick and unless something is done about it soon, it will stay that way forever."

FIVE MINUTES TO LEARN, FOREVER TO MASTER

Nerf Arena Blast
Nerf Arena Blast

Hasbro Interactive intends to release both updated classics and new titles with the Atari name, but all will follow the Atari philosophy of "five minutes to learn and forever to master." "The secret is still simple, addictive game play," Hill said. "If you can't play it in five minutes it's not an Atari title. That's the rule." The interest in the older games is due to several reasons, Hill said, such as the feeling that current games lack originality and are too complex. "It's gotten to where you can't sit down, play a 20 minute game, get up and go on with life. You have to invest hundreds of hours of play," he said. "I think some people long for a time when they could relieve a little stress over a half hour and go on with their lives." To date, the Atari name has appeared on classic titles such as Frogger and Centipede and on a collection of Atari Arcade Hits. A new game, Glover, carries the fuji logo.

Atari Arcade Hits
Atari Arcade Hits

While industry reaction has been mixed, Hill said Centipede was received favorably by the general public. Hardie said he has been "thrilled" with the company's efforts so far. "I thought Centipede was really good," he said, adding that Frogger wasn't bad for the first attempt either. "Many gamers weren't crazy about it. I really enjoyed the first-person mode and the adventure mode." Still, an improved version of Centipede is planned for Sega's new console, the Dreamcast. "It's significantly improved over the IBM-PC and Playstation version," Hill said. Four more titles are due for release this fall. Three are updates -- Pong, Missile Command and Q*Bert -- while one is a new title that clearly shows Atari's link to Hasbro, Nerf Arena Blast. Hill described Nerf Arena Blast as a first person shooting game that, instead of guns and rockets like Doom, uses Nerf weapons. Nobody dies in the game, perhaps a response to recent public outcry over violent video games. Four titles are scheduled for upgrade in 2000 -- the immortal 2600 pack-in, Combat, Star Raiders, Millipede and Crystal Castles. And Hardie said the second and third volumes of the Atari Arcade Classics are on their way as well. "I know there's a lot of stuff on there that's going to make people happy," he said. How many of Atari's 75 titles could see store shelves again? "If there is a market for them, probably all of them," Hill said.

SOFTWARE ONLY

Q*Bert
Q*Bert

Hill advises Atari fans hoping for a new console or other hardware not to hold their breath. "Right now, we're only set up as a software company," he said. "That's all we're set up to do." It's also a question of what will sell with the masses. While hard-core gamers know Atari for the Lynx and Jaguar, Hill said the public doesn't remember much about Atari's hardware beyond the 5200. Memories of the software side are much stronger. "Most people remember Centipede and Pong in the arcade," he said. Hopes that Hasbro would re-release hardware such as the Lynx and Jaguar may have been unrealistic.

"Hasbro has no interest in doing hardware or re-releasing hardware," Hardie said. "They're not going to get into the hardware business just because they bought a business that had hardware." "I don't expect to see any hardware from them," he added. "I know they were buying the rights for the games."

Thomas says it would be unwise for Hasbro Interactive to even attempt entering the console market. "It just seems like a better business decision to support already popular hardware consoles with Atari titles rather than trying to reinvent a console," he said. "Quite frankly, the money isn't in what you hold in your hand. It's in the software to support it." Call it cruel, but Hill planted a small seed of hope that, someday, maybe, just maybe, there might be something with the Atari name on it. And what could that be? Maybe keychain-size games, hardly enough to satisfy the die-hards. More intriguing is an idea Hill said is being kicked around at Hasbro Interactive -- a self-contained handheld with every 2600 title the company owns built in that could sell for around $30. Hill described it as like a TV Boy with a screen. "We could do it," he said.

JAGUAR AND ENCRYPTION

Glover
Glover

Along with the rights to the valued Atari game titles, Hasbro Interactive also picked up a warehouse full of Atari property. It stores everything the company acquired in the sale. "What's in it is anybody's guess," he said. "There is some product I know." While he hasn't been there himself, Hill said other Hasbro Interactive employees have returned from the warehouse with everything from game code to 7800s to 8-bit computers. With exploration of the warehouse admittedly low on the company's list of things to do, Hill said there's been no sign of the encryption key for the Atari Jaguar. Hasbro released the Jaguar into the public domain, Hill said, because of the number of projects in development for it that were close to completion. It's also fair to say that the company's interest in Atari is in it's older, more widely popular properties. But it turned out to be little more than a gesture. The encryption key, necessary for games to play on an average console, was missing. Although a way has been found to circumvent the key on cartridges, it remains lost.

Frogger
Frogger

"Admittedly, we do not have the encryption codes here," Hill said. "The Tramiels were not big on history. When the Jaguar failed and was no longer viable, a lot was just thrown out. A lot of history was lost. "I can tell you we're trying to acquire a copy of the encryption code and have that distributed properly," Hill said. "We understand there are developers out there who have it. Who they are I don't know."

But beyond the Jaguar, and simply releasing things into the public domain, Muhammad said he'd like to see Hasbro sell everything they don't plan on using, including remaining Jaguar, Lynx and computer properties. Who would he like to see have it? "Someone or some company that could actually do something with it besides making those properties public domain," he said. "Someone with a goal to re-enter Atari into the gaming market with the intentions of giving it a second chance and releasing a new system the right way."

LONG LIVE ATARI?

Centipede
Centipede

Is Atari alive? In the end, it may depend on one's point of view. The way Hill sees it, Atari is back in the marketplace with the muscle it hasn't had for a long time. And to keep that position, it can never be its own company again. Companies like Atari and MicroProse, which Hasbro Interactive also owns, need a big parent like Hasbro to compete. "Their pockets weren't deep enough to do the marekting that needed to be done," he said. "To break them off by themselves would probably be suicide. The little guy can't compete with marketing dollars anymore."

By taking Atari through Hasbro's channels, and getting around all the bridges Atari had burned, Hardie is confident the company can turn Atari around. "I applaud them immensely," he said. "They're really pushing Atari as a brand. They seem really committed to updating the classics. "I think the spirit of Atari is alive," he added. "It is part of Hasbro, but they are keeping the spirit of the original intention of making good, quality games. I think in that respect, it's alive. "Hasbro Interactive could've released its Atari titles under its own name, relegating "Atari" to legal notes on the back of the box, but it hasn't, says Thomas. "They've chosen to revitalize the Atari name. The Atari logo is shown in trade shows," he said. "I think they're doing a wonderful job restoring exposure to the Atari name." And re-educating the public about Atari is what's needed, Thomas said. "A couple generations of gamers have emerged who probably aren't familiar with what Atari did," he said. "By nature gamers aren't historians. When they decide they like a game they're not inclined to research what the industry is all about. Hasbro's use of old Atari products is kind of educating the market."

The Next Tetris
The Next Tetris

Ultimately, what Thomas would like to see are video game stores set up like music stores, where an entire section will be devoted to "classic gaming." "My hope is that Hasbro helps define classic gaming as a definitive new flavor of video gaming," he said. "I'm hoping Hasbro contributes to the ability to select classic gaming as a category of its own that has merit and value to the gaming community."

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