Infogrames pins sales dip on recent company restructuring

After a massive sales drop, things aren’t looking too peachy over at the Infogrames offices. This is because the company has just announced a 24% drop in sales during the nine-month period which spans from April 2006 to December 2006.

Many find it ironic that Atari‘s parent company has suffered such losses during this period, since this was also the time when other companies were profiting from the activity generated by the release of the Wii and the PS3.

Infogrames, however, has revealed that compared to sales during the same months in 2005 which generated £193 million (about US$ 380.1 million), sales this year only went up to £147 million (about US$ 289.5 million). On top of this, the company also has to deal with the large debts it has incurred over the last few years, most of which were the results of various acquisitions.

As the company prepares to announce the third quarter results on February 8, Infogrames released a statement which blames a recent restructuring as the main reason for the not-so-satisfactory performance during the cited period:

The reduction in revenues seen in the first nine months, and particularly in the third quarter, stems mainly from a significant drop in activity in the group’s American operations, following a restructuring plan of which the priority is to return the group to operating breakeven.

In the meantime, we’re hoping that the company who has brought us games the likes of Alone in the Dark, Unreal Tournament and Civilization would be able to recuperate from their losses soon.

After a massive sales drop, things aren’t looking too peachy over at the Infogrames offices. This is because the company has just announced a 24% drop in sales during the nine-month period which spans from April 2006 to December 2006.

Many find it ironic that Atari‘s parent company has suffered such losses during this period, since this was also the time when other companies were profiting from the activity generated by the release of the Wii and the PS3.

Infogrames, however, has revealed that compared to sales during the same months in 2005 which generated £193 million (about US$ 380.1 million), sales this year only went up to £147 million (about US$ 289.5 million). On top of this, the company also has to deal with the large debts it has incurred over the last few years, most of which were the results of various acquisitions.

As the company prepares to announce the third quarter results on February 8, Infogrames released a statement which blames a recent restructuring as the main reason for the not-so-satisfactory performance during the cited period:

The reduction in revenues seen in the first nine months, and particularly in the third quarter, stems mainly from a significant drop in activity in the group’s American operations, following a restructuring plan of which the priority is to return the group to operating breakeven.

In the meantime, we’re hoping that the company who has brought us games the likes of Alone in the Dark, Unreal Tournament and Civilization would be able to recuperate from their losses soon.