Atari Drops Cryptic Studio's.

[BLZBUB]

 From the desk of Kyle Orland at Gamasutra ...

 

As part of an earnings report today, Atari announced it is divesting of its interest in Champions Online developer Cryptic Studios, calling the development house a "discontinued operation" as of March 31.

 

 He goes on to say that the studio took a €5.3 million loss in 2010/2011 fiscal year.

Over at the STO forums, Community Representative 'WishStone' added:

"Right now I have no further details other than what has been mentioned elsewhere. Support for Champions Online and Star Trek Online will be continuing as normal, our staff is working hard on their projects... and there are no planned changes to the way any of our games and projects will operate."

[zetetic]

I just hope it works out well for Cryptic. I'm sure they had a heads up from Atari a while ago.
Even though I haven't played STO that much over the last year, I still pop on from time to time (I do have a lifetime sub), and I do follow their updates (looking forward to Season 4).
*fingers crossed* it all goes well :)

[Falin]

so I get an Email from MMORPG.com telling me Atari's dropped cryptic, STO and Champions, citing the Horrendous Losses. hate to say it, but I told them so, they royally screwed up on STO and it cost them the company.

Really wanted STO to be great, but I knew the minute I saw what they did with it, it'd be a total failure, and here we are, it's killed the company, not even Atari wants to keep floating it. they should have listened to us instead of berating us.

[zetetic]

I think Atari is the crappiest publisher around - so I'm glad they're going away.

But with regards to STO - have you played it recently? Have you tried the special series? They are actually quite good. A lot of changes gone through and the game is getting better.
I'm looking forward to July's release which will include the revamp of ground combat and the duty officer system.
I wouldn't dismiss STO just yet.

[Falin]

you really think anyone's going to purchase a Company that far in the hole and falling? you think anyone's going to even pick up 2 titles that are losing money that fast? how long do you think Atari's going to keep floating them hoping someone buys it before they shut it down 100%? I say not long, they're in the business to make money not lose it.

Cryptic failed miserably here, they had a chance to bring big bucks in for Atari with a big title and failed. it'll be shut down by years end, unless by some miraculous intervention some company thinks they can turn the losses around.

[zetetic]

Don't forget, Atari was expecting STO to be the next WoW to bring in millions of players...um no
I don't think there will ever be another WoW like MMO (except possibly the next Blizzard MMO). I was always suss of Atari and felt it was bad for Cryptic when Atari bought them. Atari comes across schizophrenic, first they want to be in the MMO business, now they want to be in the casual games business. As others in the STO forums have said, who knows how much of Atari's financial stuff is real and how much is fancy dress.
At the moment, all we know is that Atari is letting Cryptic go. Unless you have a personal understanding of all the financial figures relating to Atari and Cryptic, there's not much more that can be said.
We just have to wait and see. It seems something will be announced in June as dstahl has said new people are starting in June.
Let's wait and see before we start dooming and glooming (though it seems you have made up your mind already, so whatever I say is pointless to you).

[Zach]

Cryptic went from a $17million loss in the last financial year, to a $6-7 million loss this financial year.  Thats an increase in turnover of $10 million dollars. 

If they see the same increase in this financial year, keep improving Champions and STO, plus get their next game out of the door, then 2011-2012 could see them turning a profit.

Hopefully, potential investors/buyers will look at all of the financial projections involved.

[zetetic]

@Zach - that's one aspect people don't seem to be seeing either! That Cryptic are improving their financial situation, so to say that Cryptic has been a drain or a major loss etc to atari is kinda silly.

Anyways, I'm hoping we find out some good news within the next week or two :)

[zetetic]

So, Cryptic has been bought by Perfect World
http://www.gamasutra.com/view/news/34910/Perfect_World_Acquires_Champions_Online_Developer_Cryptic_Studios.php

Now I want to know what happens to lifetime subs.......

[Eiruka87]

Awesome it is very interesting