Atari Files for Bankruptcy in US In an effort to free itself from its French parent company By Kevin Spak, Newser User Posted Jan 21, 2013 10:36 AM CST 3 comments Comments In this photo provided by Strong National Museum of Play is the Atari video game system inducted into the Toy Hall of Fame in Rochester, N.Y., Thursday Nov. 8, 2007. (AP Photo/Strong National Museum of Play) (Newser) – Atari is going bankrupt, but don't worry: It has an extra life. Or at least, that's what Atari Inc., the New York-based part of the legendary video game company, is hoping. It has declared Chapter 11 bankruptcy in an effort to free itself of its French parent company Atari SA, which hasn't turned a profit since 1999, Bloomberg reports. "The Chapter 11 process constitutes the most strategic option for Atari's US operations," the company said in a statement, promising that business would continue as normal.