Studio acquisitions in the video game industry have started to become quite frequent, and Atari has decided to join in on the rising trend. For those unfamiliar with the studio being acquired, Digital Eclipse is popular on the emulation side of the gaming landscape. This is due to the fact that the developer earned most of its reputation by making nostalgic arcade games playable on the Game Boy Color, and Atari has its eyes set on it.
Since even today, there is a huge market for old-school titles being remade using modern technological upgrades, it completely makes sense for Atari to want to acquire Digital Eclipse. Nostalgia is a universal emotion felt by a lot of the video game community, as people are often looking for a comfortable, safe space in their games that they are familiar with.
Which is why preserving and restoring retro titles that got lost in time is a great way to cater to that audience while also introducing new generations to an old era, so it is natural that Atari is looking to directly cash in on the concept.
Digital Eclipse’s Work Includes Atari 50: The Anniversary Celebration
Atari has officially announced that it has reached an agreement to buy the video game preservation studio Digital Eclipse. The acquisition does not come as much of a surprise considering how the two companies have collaborated in the past on Atari 50: The Anniversary Celebration, which includes various retro and old-school games. As mentioned before, Digital Eclipse is extremely well-versed in breathing brand new life into lost classics by restoring them to make sure they never get forgotten.
According to the official Atari Newsroom, the company’s business strategy involves a heavy focus on the retro era of video games, and with the acquisition of Digital Eclipse, Atari is looking to broaden and strengthen its internal development. The announcement also proudly mentioned another one of the company’s acquisitions from 2023, when it bought Night Dive Studios earlier this year in May.
As Digital Eclipse already has plenty of experience with bringing old-school titles back from the dead, the company is going to ensure the proper and streamlined utilization of that expertise.
To further justify the acquisition, Atari also implied that it was not the only one that would benefit from the deal. In fact, the company stated that this would prove to be beneficial for Digital Eclipse as well, because through the acquisition, the studio will gain access to and be able to work on “world-class IP” for its own eventual growth and prosperity. The total amount that Atari is spending on this deal is a whopping $20 million, which is further divided into multiple parts.
Initially, Atari’s acquisition of Digital Eclipse will cost the company $6.5 million, which is divided into $4 million in cash and $2.5 million in various market shares. The upcoming decade will then have a remaining earn-out of up to $13.5 million, which will be paid in cash to the studio based on how well it performs under the company’s umbrella.
In Just a Couple of Days, Atari Will Own Digital Eclipse
Since both parties have officially agreed to the deal, Atari’s acquisition of Digital Eclipse will be finalized in just a couple of days. Digital Eclipse has been a part of the video game industry for more than three decades, since it was founded all the way back in 1992. The studio started to gain traction when it began developing various emulation versions of classic arcade titles, which included Defender and Joust.
In fact, Digital Eclipse has over 250 video game titles in its portfolio, so calling the studio an industry veteran would not be an understatement. More recently, the developer started to put together and release various modernized bundles and collections for various gaming classics.
This collection trend began in 2015 and includes numerous beloved titles such as the aforementioned Atari 50: The Anniversary Celebration, Mega Man Legacy Collection, and Teenage Mutant Ninja Turtles: The Cowabunga Collection.
Atari has obviously seen the value that these collections bring because they not only introduce old-school titles to a completely new generation but also include a lot of unseen and unused content like various design documents and concept art.
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