Atari Games was created in 1984 after the original
Atari company split into two: the arcade division would be Atari Games (still owned by Warner Communications) and the computer division would be
Atari Corporation (owned by former
Commodore founder Jack Tramiel). Warner sold the controlling interest of Atari Games to
Namco in 1985 which was eventually bought by some of its employees in 1986.
Atari Games produced a number of successful arcade games like
Marble Madness and
Gauntlet. They also released a number of home console games through their subsidiary
Tengen.
From the early 1990s, Atari Games started to struggle. They faced strong competition from companies like
Capcom together with a shrinking market for arcade games. They additionally lost several copyright and patent lawsuits to
Nintendo.
In 1993 Time Warner regained controlling interest of Atari Games and moved it under its
Time Warner Interactive division, which also resulted in the dissolvement of the
Tengen company. In 1996
Time Warner Interactive was sold to
WMS Industries and moved Atari Games under
Midway Games. In January 2000 Atari Games was renamed to Midway Games West to avoid confusion with
Atari Interactive. In February 2003
Midway Games closed down Midway Games West following substantial financial losses.