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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 VbLSF4FxuOCSX0NYoXm3diGyWDfMUiCTE51Yu4OUM7RLR7vfT7jVdFLli5VudYt7
 ajnej0V0XyzCnl/hVRtvwQ==

<SEC-DOCUMENT>0001209191-07-059090.txt : 20071019
<SEC-HEADER>0001209191-07-059090.hdr.sgml : 20071019
<ACCEPTANCE-DATETIME>20071019212428
ACCESSION NUMBER:		0001209191-07-059090
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20071017
FILED AS OF DATE:		20071019
DATE AS OF CHANGE:		20071019

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			ATARI INC
		CENTRAL INDEX KEY:			0001002607
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-PREPACKAGED SOFTWARE [7372]
		IRS NUMBER:				133689915
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0331

	BUSINESS ADDRESS:	
		STREET 1:		417 FIFTH AVENUE
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10016
		BUSINESS PHONE:		2127266500

	MAIL ADDRESS:	
		STREET 1:		417 FIFTH AVENUE
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10016

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	INFOGRAMES INC
		DATE OF NAME CHANGE:	20000511

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	GT INTERACTIVE SOFTWARE CORP
		DATE OF NAME CHANGE:	19951023

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			Shein James B
		CENTRAL INDEX KEY:			0001415429

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-27338
		FILM NUMBER:		071182069

	BUSINESS ADDRESS:	
		BUSINESS PHONE:		312-787-5475

	MAIL ADDRESS:	
		STREET 1:		1100 N. LAKE SHORE DR.
		STREET 2:		UNIT 18B
		CITY:			CHICAGO
		STATE:			IL
		ZIP:			60611
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>bny41179_bny1jbs4.xml
<DESCRIPTION>MAIN DOCUMENT DESCRIPTION
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2007-10-17</periodOfReport>

    <issuer>
        <issuerCik>0001002607</issuerCik>
        <issuerName>ATARI INC</issuerName>
        <issuerTradingSymbol>ATAR</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001415429</rptOwnerCik>
            <rptOwnerName>Shein James B</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>C/O ATARI, INC.</rptOwnerStreet1>
            <rptOwnerStreet2>417 FIFTH AVENUE</rptOwnerStreet2>
            <rptOwnerCity>NEW YORK</rptOwnerCity>
            <rptOwnerState>NY</rptOwnerState>
            <rptOwnerZipCode>10016</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable></nonDerivativeTable>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>Nonqualified Stock Option (right to buy)</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>2.55</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2007-10-17</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>A</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>2500</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>0</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <value>2008-10-17</value>
                <footnoteId id="F1"/>
            </exerciseDate>
            <expirationDate>
                <value>2017-10-17</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>2500</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>2500</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">Represents options granted by the Issuer on October 17, 2007 pursuant to its 2005 Stock Incentive Plan. Such options vest as follows: 25% on October 17, 2008 and 6.25% each calendar quarter end thereafter.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>/s/ James Shein</signatureName>
        <signatureDate>2007-10-19</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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