Entrepreneurs / Small Business  April 3, 2020

Boulder-based Xbox co-creator stiffed by Atari, lawsuit claims

BOULDER — Robert Wyatt, a Boulderite renowned in video game circles as the co-creator of Microsoft’s Xbox console, sued former employer Atari this week over claims he is owed more than $260,000 for work developing Atari’s troubled Atari VCS console. 

Wyatt and his Boulder-based firm Tin Giant were brought on to help design Atari Gamebox LLC’s yet-to-be-released gaming system in 2018, but the relationship soured quickly, and Wyatt abandoned ship in October 2019.

Media reports from the time cited industry sources who described the entire Atari VCS development and rollout process as a debacle. 

SPONSORED CONTENT

Ways to thank a caregiver

If you have a caregiver or know someone who has been serving as a primary caregiver, March 3rd is the day to reach out and show them how much they are valued!

Atari, which raised more than $3 million on crowdfunding site Indiegogo to support the project and did not respond to requests for comment Friday, hoped to have the VCS console available for sale by early 2020. That hasn’t happened.

In a blog post this month, Atari acknowledged manufacturing and shipping delays, citing Chinese supply chain disruptions as a contributing factor.

“We are so close and need to have China’s manufacturing industry, the Atari VCS supply chain, and retailer distribution systems back in order and at full capacity to be able to establish firm shipping and launch dates,” the post said.

According to the Tin Giant suit, which also includes a defamation claim, Atari executives have falsely blamed Wyatt and his firm for the development delays. 

“The fact that Atari’s console project was or is delayed has nothing to do with the quality of Tin Giant’s work but is the fault of Atari’s own mismanagement of the console project,” alleges the complaint, filed in U.S. District Court in Denver. Atari has made Wyatt “its scapegoat for the delay.”

Tin Giant’s business has suffered in the aftermath of the breakup with Atari because other firms in the video game industry are “constantly seek[ing] information from Tin Giant and Mr. Wyatt about Atari’s console project delay, and forcing plaintiffs to defend against Atari’s false statements that plaintiffs’ work on the console project caused the delay,” according to Wyatt’s complaint, filed by Boulder attorney Michael J. Laszlo.

Wyatt’s suit takes subtle digs at Atari, which enjoyed its heyday in the 1970s and 1980s. 

“The Atari Group describes itself as a ‘multi-platform, global interactive entertainment and licensing company’ that ‘owns and/or manages a portfolio of more than 200 games and franchises,’” the suit says. “For decades, however, and into 2020, the Atari Group had little to no experience relevant to advanced hardware development; for example, the Atari Group had not developed or brought to market a gaming console for more than 20 years.”

The suit demands unspecified damages. 

Wyatt is currently raising money on Kickstarter to fund development of an interactive tabletop board game system. 

© 2020 BizWest Media LLC

 

BOULDER — Robert Wyatt, a Boulderite renowned in video game circles as the co-creator of Microsoft’s Xbox console, sued former employer Atari this week over claims he is owed more than $260,000 for work developing Atari’s troubled Atari VCS console. 

Wyatt and his Boulder-based firm Tin Giant were brought on to help design Atari Gamebox LLC’s yet-to-be-released gaming system in 2018, but the relationship soured quickly, and Wyatt abandoned ship in October 2019.

Media reports from the time cited industry sources who described the entire Atari VCS development and rollout process as a debacle. 

Atari,…

Ken Amundson
Ken Amundson is managing editor of BizWest. He has lived in Loveland and reported on issues in the region since 1987. Prior to Colorado, he reported and edited for news organizations in Minnesota and Iowa. He's a parent of two and grandparent of four, all of whom make their homes on the Front Range. A news junkie at heart, he also enjoys competitive sports, especially the Rapids.
Sign up for BizWest Daily Alerts