First off, as several have already mentioned, this is not the famous Atari. The current "Atari" is really the French developer Infogames, who purchased the rights to the Atari name about four or five years ago. Just wanted to clear that up - this is not Nolan Bushnell's company or anything like that.
Anyway, it's on the sad side but hardly surprising. If you've followed Infogames for the past few years, their record has basically been a continuous train wreck. Their games constantly come out delayed, or ridden with bugs, or go drastically over budget, etc. They haven't hit on a major seller in quite a while either; the company used to publish the Civ franchise, for example, but sold it to Take-Two in 2004, I believe.
I agree with FishyJoe and Montana that someone will buy them out soon, again for the rights to use the Atari name. Although the name probably doesn't mean nearly as much to today's kids as it did a decade ago.
End of 2008 totals: Wii 42m, 360 24m, PS3 18.5m (made Jan. 4, 2008)
