After another year of struggles, underwhelming games, and historic losses, Warner decided to sell Atari in 1984. Not finding a single buyer to take over the entire company, Atari was split into several divisions, with the Consumer Division sold off to Jack Tramiel, founder of Commodore computers, who established the Atari Corporation.

The rest of the company was rebranded Atari Games Inc. and would eventually shut down in 2003.