New York City-based video game maker Atari confirmed that times have been better for the interactive entertainment company after posting US$13.3 million in net revenue for Q2, a more than 50% drop from the US$28.6 million earned during the same period last year.

Net publishing revenue, meanwhile, rang in at US$11.4 million, again a sizeable slide from the US$23.1 million posted in Q2 2006. Distribution revenue for the company also took a hit, bringing in only US$1.9 million this quarter as opposed to US$5.5 million last year.

Reasons forwarded for the sharp sales drops include the company’s decision to stop developing games in-house and an uncertain financial relationship with parentco Infogrames. It’s currently looking into new distribution channels, including online casual gaming and digital downloads to turn its fortunes around.

Net loss for the quarter ended September 30, 2007 totalled US$7.7 million compared to a net loss of US$68,000 during the last year, while losses for the first six months added up to US$19.6 million, more than doubling the ’06 figure of US$ 7.4 million.