Atari ceases Atari VCS manufacturing citing losses and over 90% revenue drop

Atari has started distancing itself from the VCS, a console that the company finally released in summer 2021 after a three-year gestation period. While the Atari VCS remains orderable on the company's US website, it has made the situation clear in its most recent half-year results report: 

In other words, Atari has pulled the brakes on the VCS after 18 months of sales. Recent sales figures explain why Atari has turned its attention elsewhere, with VCS hardware and cartridge revenues dropping from €2.3 million to €0.2 million. Atari still has €1.6 million of VCS inventory and spare parts though, which explains why the 'All-In Bundle' remains available in the US, now at a discounted US$239.99.

Although it is the end of the road for the VCS console, Atari claims to be considering developing new complementary hardware. However, these options will only be explored through licensing contracts with partners. Overall, new Atari-branded products may arrive next year, but this might be limited to accessories and other ancillaries rather than new console hardware.

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