GT Interactive

Infobox Company
company_name = GT Interactive
company_
vector_
company_type = Predecessor to Atari, Inc.
genre =
foundation = 1993
founder = Ron Chaimowitzcite book |last=Kushner |first=David |authorlink=David Kushner |title=Masters of Doom |format=paperback |accessdate=2007-10-17 |year=2003|publisher=Random House |isbn=0-8129-7215-5] and the Cayre Family
location_city = Flagicon|USA New York, NY
location_country = USA
origins = New York
key_people = Cayre Family and CEO Ron Chaimowitz
area_served = World
industry = Interactive Entertainment
products = Unreal Tournament, Mortal Kombat III, Doom II, Quake
revenue = loss$408 million (1999) [http://www.secinfo.com/$/SEC/Filing.asp?T=svr4.5174_3wu SEC Info - Atari Inc - 10-Q - For 12/31/99, As Of 2/14/00 - Table in Document 1 of 2 - 10-Q - Gt Interactive Software Corp ] ]
operating_income = lossred|$-267 million (1999) [http://www.secinfo.com/$/SEC/Filing.asp?T=svr4.65Ts_52cq SEC Info - Atari Inc - 10-K - For 3/31/99, On 6/29/99 - Table in Document 1 of 9 - 10-K - Gt Interactive Software Corp ] ]
net_income = lossred|$-254 million (1999)
num_employees = 1,168 (August, 1999) [http://www.secinfo.com/dsvr4.65Ts.htm SEC Info - Atari Inc - 10-K - For 3/31/99 ] ]
parent =
subsid = Humongous Entertainment, Legend Entertainment, Reflections Interactive, Cavedog Entertainment
owner = NASDAQ traded
company_slogan =
homepage =
footnotes =

GT Interactive Software Corporation (Good Times or GTI) was an American video game publisher and distributor, which later became also a developer of video games and PC games.

GT Interactive ceased to exist in December 1999 when Infogrames Entertainment SA (IESA) took a controlling stake and renamed the company Infogrames, Inc..cite web
title = Infogrames Entertainment Corporate Profile and Annual Report
publisher = Infogrames Entertainment SA
date = Fiscal Year 2005-2006
pages = 7
url =http://corporate.infogrames.com/MT-3.34-en/mt-static/FCKeditor/UserFiles/File/DOCDEREF05_06GB.pdf
accessdate = 2007-11-06 ] In 2003, Infogrames Inc. changed its name to Atari Inc.cite web
last = Atari Inc.
title = 10-KT · For 3/31/03, Overview Subsection
publisher = Atari Inc.
date = March 31st, 2003
url =http://www.secinfo.com/dsvr4.28Z7.htm#5ug
format =
doi =
accessdate = 2007-11-06 ]

History

1993 - GT Interactive is founded

GT Interactive was founded in 1993 as a division of Good Times Home Video, a video-tape distributor owned by the Cayre family. First year's revenue reached $10.3 million. [http://www.businessweek.com/1996/36/b349199.htm 09/02/96 LOTS OF "DOOM" BUT NO GLOOM ] ]

Doom was released, it sold 2.9 million copies. [ [http://www.justadventure.com/articles/What_Was_That/What_Was_That.shtm Now What Was That GT and Hasbro Were Saying ] ] But GT Interactive didn't publish Doom exclusively.

1994 - 880% revenue growth

GT Interactive revenue soared 880% and reached $101 million on its second year of existence and profits reached $18 million. [ [http://www.secinfo.com/$/SEC/Filing.asp?T=svr4.65Ts_1qyz SEC Info - Atari Inc - 10-K - For 3/31/99, On 6/29/99 - Table in Document 1 of 9 - 10-K - Gt Interactive Software Corp ] ] GT Interactive's partnership with id Software scored another hit with , which was released in October and sold over 2 million copies.

1995 - GT Interactive's IPO

In February, GTIS obtained the publishing rights to games based on Mercer Mayer property, which included Little Critter and Little Monster. [ [http://www.thefreelibrary.com/GT+INTERACTIVE+REPORTS+RECORD+SECOND+QUARTER+REVENUES%3B+Publishing...-a018547655 GT INTERACTIVE REPORTS RECORD SECOND QUARTER REVENUES; Publishing Business Increases Nearly 300 Percent. - Free Online Library ] ] GT Interactive began to set up displays at K-Mart and Wal-Mart for low cost software. [ [http://www.secinfo.com/dsvr4.83wj.htm SEC Info - Atari Inc - POS AM - On 5/1/97 ] ]

GTIS signed with Wal Mart an exclusive software supplier agreement, [ [http://findarticles.com/p/articles/mi_m3092/is_n19_v34/ai_17530287 Software tops retailers' sales growth list for '94/'96 - Hot Growth Categories | Discount Store News | Find Articles at BNET.com ] ] , that meant according to UBS Securities analyst Michael Wallace: "All software developers have to deal with GT if they want to sell in a Wal-Mart."

In December, GT Interactive debuted on Nasdaq, its IPO raised $140 million and was one the biggest IPOs of the year only losing to the IPO of Netscape. [ [http://findarticles.com/p/articles/mi_m0EIN/is_1999_Oct_27/ai_56954514 GT Interactive Co-founder Named CEO of The Auction Channel — Ron Chaimowitz to Lead U.S. Launch and Global Roll-out of The Auction Channel Programming | Business Wire | Find Articles at BNET.com ] ] [http://caselaw.lp.findlaw.com/scripts/getcase.pl?court=2nd&navby=case&no=007005&exact=1 FindLaw for Legal Professionals - Case Law, Federal and State Resources, Forms, and Code ] ] GT Interactive Software Corporation was listed on Nasdaq as GTIS. [http://www.secinfo.com/dsvr4.86Pa.htm SEC Info - Atari Inc - 10-Q - For 6/30/97 ] ]

GT Interactive offered 10 million shares to the public at $14 each. During GT Interactive's IPO, Appellee Cayre sold more than 1.4 million shares, 9.2% of his shares, for a $20 million return.

GTIS reported a strong revenue growth of 134% in the year to $234.4 million, but in the first sign of trouble ahead profits increase a meager 23% to $22.6 million.

1996 - Humongous Entertainment is acquired

In January, GT Interactive obtained the publish rights for the highly anticipated Quake from id Software. [ [http://findarticles.com/p/articles/mi_m0EIN/is_1996_Jan_11/ai_17776763 GT Interactive Software signs id Software's highly anticipated 'QUAKE'; GT to Publish 'Quake' for all gaming hardware systems | Business Wire | Find Articles at BNET.com ] ] In February, GTIS and Target signed an agreement in which GT Interactive became the primary consumer software supplier to all Target's 675 stores. [ [http://www.thefreelibrary.com/GT+Interactive+and+Target+Stores+enter+distribution+agreement%3B+GT...-a017963881. GT Interactive and Target Stores enter distribution agreement; GT Interactive to Become Primary Software Vendor to More Than 600 Target Stores Nationwide. - Free Online Library ] ]

In June 1996 GTIS acquired WizardWorks, which developed Deer Hunter, for 2.4 million shares and FormGen, which had the publishing rights of Duke Nukem, for 1 million shares or $17 million. [ [http://dukenukem.typepad.com/game_matters/2003/12/royalties_and_a.html Game Matters: Royal tease ] ]

Quake was also released in June by GT Interactive for PC game. Quake sold 1.8 million copies and became a classic PC game. [ [http://www.justadventure.com/articles/What_Was_That/What_Was_That.shtm Now What Was That GT and Hasbro Were Saying ] ]

In July, the game developer Humongous Entertainment was bought by GT Interactive for 3.5 million shares or $76 million [http://www.bizjournals.com/seattle/stories/1996/07/15/story5.html Humongous lives up to name with $76 million sale - Puget Sound Business Journal (Seattle): ] ] . In 1995, Humongous Entertainment's revenue had risen to $10 million an increase of 233% over 1994's revenue of $3 million. The deal gave GT Interactive rights to successful children's software titles such as Putt-Putt and Freddie the Fish.

In November, GTIS acquired Warner Interactive Europe for $6.3 million in cash, with this acquisition GTIS gained access to software markets in Western Europe.

In a further sign of uncertainty about GT's future, GTIS, for the year, reported a net income increase of only 11% over the previous year to $25.1 million. Revenue growth also decelerated to 56%, revenue for the year was $365 million. Making matters worse, net income in the fourth quarter reduced 16.8% to $8.5 million when compared to 1995's fourth quarter.

1997 - $530 million in revenues but $25 million net loss

In January, GT bought One Stop, a European value software publisher, for $800,000 in cash.

In June, GTIS signed a deal with MTV, the deal gave GTIS the rights to publish games based on Beavis and Butt-head and Aeon Flux. [ [http://findarticles.com/p/articles/mi_m0EIN/is_1997_June_18/ai_19518846 GT Interactive and MTV: Music Television announce global multi-title publishing agreement | Business Wire | Find Articles at BNET.com ] ]

On October, GTIS bought game developer SingleTrac for $14.7 million, $5.4 million in cash and $9.3 million in stock. SingleTrac owned and developed such games as Twisted Metal and Jet Moto. [http://www.secinfo.com/dsvr4.5174.htm SEC Info - Atari Inc - 10-Q - For 12/31/99 ] ] In September game developer Cavedog Entertainment made its first release, Total Annihilation [ [http://www.gamespot.com/pages/tags/index.php?type=game&tags=cavedog cavedog - GameSpot ] ] , which sold more than 1 million copies. Cavedog Entertainment was a divisision of Humongous Entertainment [ [http://www.mobygames.com/company/cavedog-entertainment MobyGames - Cavedog Entertainment ] ]

On October 5th 1997, GTIS announced that it had signed a definitive agreement to acquire MicroProse for $250 million in stock, the deal had even been unanimously approved by the Board of Directors of both companies. The deal was expected to be completed by the end of that year. [ [http://findarticles.com/p/articles/mi_m0EIN/is_1997_Oct_5/ai_19817403 GT Interactive to Expand as World's Fastest Growing Interactive Entertainment Company Through Acquisition of MicroProse | Business Wire | Find Articles at BNET.com ] ] [ [http://query.nytimes.com/gst/fullpage.html?res=9F03E6DB103DF935A35753C1A961958260 $250 Million Stock Deal for Microprose - New York Times ] ]

But on December 5th the acquisition was cancelled, according to both CEOs "the time is simply not right" for the deal. MicroProse's stock plummeted after the announcement of the deal's cancellation. [ [http://www.cbronline.com/article_cg.asp?guid=99237717-6B91-4283-9EC4-3338CE1B46B0 MICROPROSE AND GT INTERACTIVE CALL OFF MERGER - Computer Business Review ] ] [ [http://query.nytimes.com/gst/fullpage.html?res=9404E5DD1E3DF935A35751C1A961958260 Company News; Microprose And Gt Interactive End Merger Talks - New York Times ] ]

GTIS's result was negatively affected because GTIS stopped being the exclusive computer software distributor to Wal Mart in March, Wal Mart decided to buy its software directly from the publishers. [ [http://findarticles.com/p/articles/mi_hb5057/is_199703/ai_n18409474 GT Interactive loses ground at Wal-Mart. (GT Interactive Software; retail company) | Video Business | Find Articles at BNET.com ] ]

In 1997 GT Interactive's share of the Entertainment software market reached a historical low of 6.4% down from the record highs of 9% and 10% years earlier. GT Interactive was leader only on the arcade/action category, with a 20.3% market share. Making matters worse, GT Interactive also had a high debt/equity ratio of 41%, Electronic Arts had a debt/equity ratio of just 8%. For 1997 GTIS's return on equity was a dismal -16.14%. [ [http://www.johnson.cornell.edu/parkercenter/docs/studentresearch/1998_spring/erts.pdf ElecArts.PDF ] ] For the year, GTIS 's revenue growth continued to decelerate, increased only 45% to $530 million. [http://www.atnewyork.com/news/article.php/249211 Gt Interactive Hires Disney Honcho, Raises Cash ] ] GT Interactive posted its first net loss, during 1997 GTIS lost $25 million.

1998 - Revenue growth falls to 10%

In May, Epic Games's Unreal was published by GT Interactive, in the first 10 months over 800,000 copies were sold. Coincidentally Deer Hunter II, which was released in October also sold 800,000 copies.

In November, GTIS bought for $17.2 million in stock One Zero Media, becoming the first game publisher to own an entertainment Internet website.

Legend Entertainment was acquired for around $2 million, while Reflections Interactive was acquired for 2.3 million shares or $13.5 million. Both companies were bought in December of 1998. [ [http://www.amazon.com/Game-Design-Second-Bob-Bates/dp/1592004938 Amazon.com: Game Design, Second Edition: Books: Bob Bates ] ]

In the fourth quarter of 1998 GT Interactive posted a net income of $16.7 million on revenues of $246.3 million. For the year, GT Interactive reported revenues were almost flat rising 10% to $584 million but GT Interactive swung into black by posting a $20.3 million net income. Results with the fiscal year ending on December 31, 1998.

1999 - Infogrames buys GT Interactive

The year of 1999 brought bad news for GT Interactive's shareholders, it posted first quarter losses of $90 million due to restructuring costs. In February, in light of the bad results CEO Ron Chaimowitz was replaced.

Games sales in 1999 fell in comparison to 1998, this fact had dire consequences on GTIS's finances. In April, GTIS predicted for 2000 a first quarter loss of $55 million on revenues of around just $95 million. A failure to release 5 major games and a planned relocation to Los Angeles added to the losses. [ [http://findarticles.com/p/articles/mi_m0CGN/is_1999_April_13/ai_54373559 GT Interactive Predicts Q4 Loss, Cuts 650 Jobs - Company Financial Information | Computergram International | Find Articles at BNET.com ] ] In June, GTIS announced it had hired Bear Stearns to look into the possibility of either a merger or a sale of the company and in October GT Interactive fired 35% of its workforce or 650 employees mostly from its distribution section. [http://query.nytimes.com/gst/fullpage.html?res=9A0DE2D9133DF935A25752C1A96F958260 Infogrames Gets Control of GT Interactive - New York Times ] ]

In June Reflection's Driver was released it sold approximately 1 million copies. In July One Zero Media was sold for $5.2 million in cash, just six months after it was purchased.

In November 16, Infogrames announced that it was buying for $135 million 70% of GT Interactive, Infogrames assumed the new subsidiary's $75 million bank debt and had invested $30 million at GT Interactive by June 2000.

Ten days later GT Interactive made one of its last releases, the classic Unreal Tournament which went on to sell more than 1 million copies. [ [http://findarticles.com/p/articles/mi_pwwi/is_200008/ai_mark15014824 Infogrames Unleashes Unreal Tournament: Game Of The Year Edition To The Mass Market This Fall | Market Wire | Find Articles at BNET.com ] ]

IESA's acquisition came just in time because GT Interactive's 1999 result were dismal. Revenues fell 30% to $408 million in 1999 and GT Interactive posted a net loss of $254 million for 1999. Results with the fiscal year ending on December 31, 1999.

On December 16th the deal was consummated and GT Interactive was no more, it became Infogrames, Inc., a subsidiary of IESA.

GT Interactive became Infogrames, Inc., then Atari, Inc in 2003. [ [http://corporate.infogrames.com/MT-3.34-en/mt-static/FCKeditor/UserFiles/File/DOCDEREF05_06GB.pdf Microsoft Word - couverture_GB.doc ] ] And IESA has since retired the GT Interactive brand.

Games published

Game Boy

*"Beavis and Butt-Head"
*"Oddworld Adventures"

Game Boy Color

*"Duke Nukem"
*"Oddworld Adventures 2"

Macintosh

*""
*"Bedlam"
*"Blood"
*"Doom II"
*"Hexen"
*"Ice and Fire"
*""
*"Lode Runner 2"
*"Rocky Mountain Trophy Hunter"
*"ZPC"

Nintendo 64

*"40 Winks" (Cancelled), Playstation only release
*"7th Legion"
*"DethKarz"
*"Duke Nukem 64"
*""
*"Hexen"
*"Mike Piazza's Strike Zone"
*"Ultra Combat" (Cancelled [Nintendo Power, Volume 86, page 15] )
*"Unreal N64"

PC

*"1602 A.D."
*""
*"AHX-1"
*"Amok"
*"Animorphs"
*"Area 51" (Arcade)
*"Beavis and Butt-Head DO U"
*""
*"Bedlam"
*"Blood"
*""
*""
*""
*"Bug Riders"
*"Carnivores (game)"
*""
*"Clans"
*"Dark Vengeance"
*"Deep Sea Trophy Fishing"
*"Deer Hunter 2"
*""
*"Discworld Noir"
*"Doom II"
*""
*"Duke Nuclear Winter"
*""
*""
*""
*"Hordes"
*"Ice and Fire"
*"Imperium Galactica"
*""
*"Jeff Wayne's The War of the Worlds"
*"Locus"
*"Lode Runner 2"
*"Mage Slayer"
*""
*"Master Levels for Doom II"
*""
*"Nam"
*""
*""
*"Powerslide"
*"Pro Bass Fishing"
*"Quake"
*"Ravage DCX"
*"Rebel Moon Revolution"
*"Rebel Moon Rising"
*"Robotron X"
*"Rocky Mountain Trophy Hunter"
*"Rocky Mountain Trophy Hunter 2"
*""
*"Sensible Soccer '98"
*"Shadow Warrior"
*"Snowmobile Championship 2000"
*"Snowmobile Racing"
*""
*"SuperKarts"
*"Swamp Buggy Racing"
*"The Wheel of Time"
*"Tiger Shark"
*"Tides of War(1999)"
*"Total Annihilation"
*""
*""
*"Totally Unreal"
*"Trans Am Racing"
*"Trophy Hunter"
*"Unreal"
*""
*"Unreal Tournament"
*"WWII GI"
*""
*""
*"XS"
*"Z Expansion"
*"ZPC"

PlayStation

*"40 Winks"
*""
*"Bedlam"
*"Bug Riders"
*"Courier Crisis"
*"Critical Depth"
*"Dead Ball Zone"
*"Discworld Noir"
*""
*"Driver 2"
*""
*""
*""
*"Hexen"
*"Invasion From Beyond"
*""
*""
*"Rebel Moon"
*""
*"Sensible Soccer 2000"
*""
*"Tiger Shark"
*"Trash It!"
*"Z"

ega Saturn

*"Doom"
*"Hexen"
*"Z"

Games developed

Macintosh

*"Seventeen Style Studio"

PC

*"AHX-1"
*"Bedlam"
*"Hordes"
*""
*"Seventeen Style Studio"
*"Snowmobile Championship 2000"
*"Tag Team Wrestling"

PlayStation

*""
*"Tiger Shark"
*""

References

* [mailto:[e-mail] Cécile Sornay] . " [http://corporate.infogrames.com/history.html The History of Atari, Inc. and its majority shareholder, Infogrames Entertainment SA (IESA)] ." " [http://corporate.infogrames.com/ Atari Official Corporate Site] ". Accessed on April 21, 2005.