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Home Market dynamics

Atari's Las Vegas esports hotel project has been cancelled, leaving only Phoenix as a potential funding location.
There's still a long way to go.

Author: Mash Yang
2026-01-19
in Market dynamics, Life, observe, Dentou
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In 2020, long-established game developer Atari made a bold announcement about creating cyberpunk-style games in eight cities across the United States.Atari HotelsHowever, Sara Collins, a spokesperson for Atari Hotels, which is in charge of the project, recently confirmed that the original plans to build in cities such as Las Vegas have been officially cancelled, and all the focus will now be shifted to Phoenix, Arizona.

Atari's Las Vegas esports hotel project has been cancelled, leaving only Phoenix as a potential funding location.

Once planned to have eight locations across the United States, only Phoenix remains, struggling to survive.

According toThe Las Vegas Sun reportedIt was noted that Atari's deal in Las Vegas ultimately "didn't come to fruition." Therefore, the company will currently focus on developing its Phoenix location.

The plan was first announced before the outbreak of the pandemic in 2020, and it was quite ambitious, with plans to establish a presence in Austin, Chicago, Denver, Las Vegas, San Francisco, San Jose, and Seattle. However, with Las Vegas confirmed to be out of the running, the other locations seem to have fallen through as well.

Although the official website's Q&A section still states that "other locations, including Denver, are being explored," it appears that only the Phoenix project will continue at present.

Phoenix is ​​severely behind schedule and is still short $4000 million in funding.

Even Phoenix, the first city in the project, has experienced numerous setbacks. Originally scheduled to begin construction in 2020, the latest timeline, affected by the pandemic and development delays, now anticipates construction to officially begin at the end of 2026, with the opening date postponed to 2028.

Atari's Las Vegas esports hotel project has been cancelled, leaving only Phoenix as a potential funding location.

Even more worrying is Atari's funding situation. According to a press release issued last December, the company is still trying to raise $35 million to $40 million to build what it calls a "playable destination." This means that Atari Hotels has a long way to go before its dream comes true.

Analysis of viewpoints

Atari holds an unshakeable position in gaming history, but its actions over the past decade have mostly revolved around selling "nostalgia." From the delayed shipment of the retro VCS console to this much-hyped but ultimately disappointing hotel project, its execution capabilities are being questioned.

"Esports-themed hotels" sounded like a trendy concept in 2020, but with the rapid pace of hardware upgrades and the tourism ecosystem drastically altered by the pandemic, investing heavily in building physical hotels carries extremely high risks. If even Las Vegas, the world's most popular city for entertainment, gaming, and esports, couldn't be reached, can the Phoenix location truly open smoothly in 2028? It's best to remain cautious and not have too high expectations.

Tags: ArizonaAtariAtari HotelsLas VegasArizonaLas VegasAtari
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Mash Yang

Mash Yang

Founder and editor of mashdigi.com, and student of technology journalism.

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