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Atari is the worst company EVER when it comes to business decisions. Not even Saturn-era SEGA can come close to matching Atari. Plus, they are almost bankrupt anyway. Let's take a look at what PROVES they are stupid.
1. Passing on the chance to release the NES in America
2. Atari Jaguar
3. Bad games in general, that suck so much no one buys them
4. Atari 5200
and of course:
5. THAT GODDAM ET, which caused the video game crash
Honestly, it's like they are TRYING to destroy their company. What they should be doing is making games for Wii and DS. That is their only chance. They'd probably still fail, but it would take longer. At this point, they are essentially dead, and no "Final Fantasy" can save them. All because things like this happen constantly.