News: The makers of Enter the Matrix now belong to Foundation 9.
Atari has finished "the final phase of [their] strategic restructuring" as Shiny Entertainment was sold to Foundation 9 yesterday. Foundation 9 is one of the largest independent game developers out there and the owner of many studios including Backbone Entertainment, The Collective and Digital Eclipse. In 2007, the entire Shiny team will relocate to Foundation 9 and work in the same offices as The Collective.
Shiny was working on a PSP version of Earthworm Jim, which Atari will still publish.
Shiny's first project for Foundation 9 will be a "major, as-yet-undisclosed day and date release" of a Hollywood property.
We'll have more soon.