AtariDatacenter writes: "Newly released evidence suggest that Atari Corporation's decline (ending in 1996) may have been greatly influenced by two factors. Atari's investment in Federated Department Stores was a major financial disaster that was far worse than the public was aware of at the time. The depth of the injury by Federated was partially concealed by a DRAM import and resale operation which was determined by the FBI to be an illegal operation. Federated had financially crippled Atari. Both Federated and the DRAM resale operation kept management distracted. Atari limped along, but never recovered."
AtariDatacenter writes: Years ago I submitted a Freedom of Information Act request with the FBI for documents regarding Atari Corporation. What I received back was amazing. At a time when the tech industry was dealing with a DRAM shortage and trade restrictions to protect American semiconductor manufacturers, Atari was circumventing that agreement to earn some badly needed cash. Its acquisition of Federated Department Stores was bleeding it dry.