STOCKS NEWS EUROPE-Atari hit by outlook cut

Shares in Atari (ATAR.PA) are down 10 percent after the French video games publisher cuts its earnings outlook for the second half of fiscal year 2009-10, citing a change in the revenue recognition of online games.

Atari now expects current operating income to be neutral to slightly negative in the second half, excluding non-recurring items. The company, which in May changed its Infogrames Enterainment's name to Atari, had guided for current operating income at or above breakeven in second-half of 2009-10.

Atari Chief Financial Officer Fabrice Hamaide tells Reuters that to date the recession-hit global video games software market has yet to benefit from long-awaited price cuts on games consoles and that Atari could consider making small acquisitions in the social online networks sector.

Atari shares are down 10.79 percent at 8.43 euros, underperforming those of domestic rival Ubisoft (UBIP.PA), which are up 0.09 percent.

Reuters Messaging rm://dominique.vidalon.reuters.com@reuters.net