Atari Acquires Night Dive Studios to Strengthen Retro Game Portfolio

Atari Expands Retro Gaming Strength with Acquisition of Night Dive Studios In a notable development for the gaming industry, Atari has officially entered into an agreement to acquire Night Dive Studios, the developer and publisher renowned for revitalizing classic titles for modern audiences.

Night Dive Studios has built a strong reputation over the past decade, bringing beloved franchises like System Shock, Quake, and Doom 64 to platforms such as the Nintendo Switch and other contemporary hardware.

This acquisition marks a significant expansion of Atari's retro games portfolio and its ability to deliver restored classics to new generations via platforms like the Nintendo eShop. The acquisition, announced through a report from Yahoo! Finance, will see Atari obtain complete ownership of Night Dive Studios, including its valuable proprietary technology—the KEX Engine.

The KEX Engine has been instrumental in making vintage games accessible on today’s hardware, allowing titles such as Quake and Doom 64 to run seamlessly on systems like the Nintendo Switch. Financial details reveal that Atari will pay an initial sum of $10 million, split evenly between cash and Atari stock, at the completion of the deal.

An additional performance-based earn-out of up to $10 million in cash may be paid over the next three years, depending on Night Dive Studios' future financial results.

The acquisition is anticipated to be finalized by April 2023, according to the announcement. Night Dive Studios' co-founders, Stephen Kick and Larry Kuperman, emphasized the strong alignment between the two companies.

They noted that both Atari and Night Dive share a deep appreciation for retro gaming and a commitment to producing high-quality remasters and original titles.

In a statement, the Night Dive leadership expressed confidence that this partnership offers unparalleled opportunities for long-term growth and creative collaboration, pointing to Atari's experience and resources as invaluable assets. Wade Rosen, Chairman and CEO of Atari—who already held a 13% minority stake in Night Dive Studios—highlighted the strategic significance of the acquisition.

Rosen stated that Night Dive Studios' expertise in reviving and commercializing retro IP complements Atari’s long-standing focus on retro gaming experiences.

He further explained that this move aligns perfectly with Atari’s strategy to invest in and expand its library of classic titles for new audiences across platforms. This acquisition is a clear signal of Atari’s commitment to enriching its classic games catalog, leveraging Night Dive’s technological strengths and history of successful remasters.

For fans of vintage gaming and Nintendo Switch users alike, the partnership promises a robust future for retro titles on modern platforms, both through physical releases and digital storefronts such as the Nintendo eShop. With the retro gaming resurgence showing no signs of slowing down, the collaboration between Atari and Night Dive Studios could set a new industry standard for reinvigorating and expanding access to timeless classics.

System Shock Atari Quake retro gaming Doom Night Dive Studios Doom 64 Nintendo Switch KEX Engine