Atari recently released its half-year earnings report for the current financial year, and it didn't seem to have much good news for the Atari VCS console. As picked up by Tom's Hardware, the report pointed to a decline in Atari's hardware sales, along with a reorganization of the hardware side of the business that would involve suspending relationships with the VCS' manufacturer.

The report points to a 92% decrease in hardware revenue year-on-year, dropping from $2.44 million to only $212,466. Atari points to a decline in "cartridge activity" to account for this drop, as well as "underperformance by the VCS." Overall, Atari reported a 27% decrease in revenue from the same period last year.

The report also mentions that Atari have been busy with a reorganization of its hardware business for the first half of the financial year. This includes "the suspension of direct hardware manufacturing relationships, notably with regards to the Atari VCS." Atari specified that it wouldn't be giving up on the console, instead opting for "a new commercial strategy [that] has been implemented as of the end of calendar year 2022 and that will continue in calendar year 2023."