Atari is set to acquire Digital Eclipse to boost its retro-focused ambitions

Atari has entered into an agreement to acquire Digital Eclipse, with the deal expected to be completed in the coming days.

It will pay up to $20 million to purchase the California, US-based studio, which was founded in 1992 and specialises in remastering and restoring classic games.

The deal includes $6.5 million in cash and stock on completion, plus an earn-out of up to $13.5 million, payable in cash over the next 10 years based on Digital Eclipse’s future performance.

Atari said the acquisition will “further support its retro-focused growth strategy” following the acquisition of fellow retro remaster specialist Nightdive Studios earlier this year.

“Digital Eclipse is the best in the world at what they do,” said Atari CEO Wade Rosen. “They have a deep love and respect for the history of the games industry, and are renowned for developing critically acclaimed projects based on historic franchises.

“Digital Eclipse, along with Nightdive, are in perfect alignment with Atari’s DNA and renewed purpose. I’m personally excited to see where we can push the boundaries of retro innovation together.”

Further reading

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The Atari 2600+ is a modern version of Atari’s classic console which plays original cartridges

The system will have HDMI support and will play most 2600 and 7800 carts

Recent projects from Digital Eclipse include Street Fighter: 30th Anniversary, Mega Man Legacy Collection, SNK 40th Anniversary Collection, Teenage Mutant Ninja Turtles: The Cowabunga Collection and Disney Classic Games Collection.

“Our experience collaborating on Atari 50: The Anniversary Celebration was revelatory,” said Digital Eclipse president and creative director Mike Mika. “The trust that Atari showed our team, and our clear mutual love and respect for the content, positioned us to produce something truly remarkable. I know Atari will continue to champion our approach and that we will be bringing fans exciting new projects for years to come.”