Atari announces PC games unit

Atari has announced that it is launching a new interactive games division called Atari Interactive.

Company officials say the new division will put a '90s spin on golden oldies such as Asteroids and Pac-Man as well as develop new titles.

The move is another attempt by the company to regain its position as a leader in the video game industry it helped launch more than 15 years ago.

Atari has lost considerable ground against market competitors Sega and Nintendo in recent years, evidenced most recently by the tepid sales of Atari's 64-bit Jaguar game system.