Game developer and publisher Atari has closed two US offices and is restructuring following a 15 percent profit drop for the quarter ending 31 December 2004.
The company shut down its Santa Monica office in California and the Beverly office in Massachusetts. Staff have been relocated to Atari's New York office.
Earnings were US$161.8 million, down from US$23 million for the same quarter in 2003.
The fall was attributed to a shortage of console hardware available to retail, plus a weak games catalogue from Atari facing strong competition from other publishers.
In a statement, newly appointed president and chief executive Jim Caparro said: "We've begun taking aggressive steps to address structural, operational and financial issues which we anticipate will better position the company."
Caparro revealed that Q2 2005 results were expected to "report a net loss in the range of break-even to US$10 million".
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iTnews Executive Retreat - Security Leaders Edition
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