Test Drive Unlimited studio shutting down

Atari's latest financial report reveals firm closing doors at Lyon, France-based Eden Games, company revenues slide 34 percent; mobile games to be a focus in time ahead.

Test Drive Unlimited studio Eden Games is headed to the scrap yard. Studio owner Atari has announced that the Lyon, France-based development shop is now labeled as "discontinued operations," with the publisher beginning to sell off investments related to the studio.

Eden Games most recently developed 2011's warmly received Test Drive Unlimited 2 for the Xbox 360, PlayStation 3, and PC. Previously developed titles include 2008's Alone in the Dark, and the 2006 original Test Drive Unlimited.

In 2011, Eden Games formed a "symbolic strike" aimed at protesting a wave of forthcoming layoffs at the firm, believed to total as many as 80. A letter from Eden Games claimed "mismanagement" on the part of Atari and noted the publisher was not willing to enter negotiations with the studio.

[UPDATE] Following the publication of this story, Atari confirmed with GameSpot that Eden Games is not presently shut down.

"Our earnings statement contained a report about the divestment of Eden Studios. We want to make it clear that the studio has not closed and that we will continue to support the console and PC games of Eden Studios, notably Test Drive Unlimited 2, while this process is underway," reads a line from the statement. "The divestment is in line with our previously stated strategy of exploiting our popular intellectual property library on mobile devices, where he have seen strong initial success, and via online games and licensing."

The news comes via Atari's latest financial report, which saw company revenues slide some 34 percent to �39.6 million ($51.3 million) for the fiscal year ended March 31, 2012. The company posted a net loss of �3.7 million ($4.78 million) for the period, better than the �6.2 million ($8.02 million) hit it took a year ago.

Looking ahead to its current fiscal year, Atari said it will build and monetize its digital titles, with a focus on making mobile games a "core" business sector. Outside of this, Atari plans to take advantage of its intellectual property portfolio through licensing and strategic partnerships.

Atari did not mention specific financial goals for the coming year, but did say the firm expects flat-to-continued improvement for operating income.
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