Atari announced that it has reached an agreement to acquire Digital Eclipse, an Emeryville, California-based studio specializing in "digital restoration of classic games." The move follows Atari's acquisition of Night Dive Studios in May of this year, another retro-focused studio that recently developed a remake of System Shock.

At least it makes a lot more sense than Atari Hotel. Digital Eclipse is a pioneer in commercial video game emulation, and the studio's recent projects include Street Fighter: 30th Anniversary, Mega Man Legacy Collection, SNK 40th Anniversary Collection, and Teenage Mutant Ninja Turtles," "Cowabunga Collection": The Cowabunga Collection, and "Disney Classic Games Collection," which together have sold "millions of copies. Recent projects include the excellent "Atari 50: The Anniversary Collection," the well-received "The Making of Karateka," and the "Wizardry: Proving Grounds of the Mad" remake, currently in Early Access. Overlord" remake, which is currently in Early Access.

"Digital Eclipse is the best in the world at what they do. They have a deep love and respect for the history of the gaming industry and are renowned for developing critically acclaimed projects based on historic franchises." Digital Eclipse, along with Night Dive, is perfectly aligned with Atari's DNA and new purpose."

Mike Mika, President and Creative Director of Digital Eclipse, said, "Collaborating on 'Atari 50: Anniversary Celebration' was an invaluable experience. The trust Atari showed in our team and our clear mutual love and respect for the content allowed us to produce something truly amazing. Atari continues to support our approach and will continue to provide fans with exciting new projects for years to come.

The agreement calls for an initial $4 million in cash and $2.5 million in Atari stock up front, plus $13.5 million in "earn-out" cash payments over the next 10 years based on performance. The acquisition is expected to close within days.

Atari, led by Rosen, is looking increasingly impressive. While there have been missteps like the Hotel and NFT, and there is still a division dedicated to blockchain, Atari has in recent years focused on what it does best: leveraging its gaming history and repackaging and re-mastering classic games in a way that appeals to a modern audience.

Atari also recently acquired the AtariAge archive (and announced a new 2600 that uses cartridges) and acquired the rights to hundreds of games from the 80s and 90s. both Digital Eclipse and Nightdive Studios are best in class in terms of quality, and it will be interesting to see where these studios, and Atari itself, will focus their efforts next.