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                                                                   EXHIBIT 99.5

                             CONSULTATION AGREEMENT
                             ----------------------

This agreement dated January 3, 2005, with an effective date of January 1, 2005,
is made between Atari, Inc. ("Company"), a Delaware corporation with its
principal place of business at 417 Fifth Avenue, New York, NY 10016, and Ann
Kronen ("Consultant"), an individual residing at 19154 Pacific Coast Highway,
Malibu, CA. 90265.

1.   Consultation Services
     ---------------------

     Company hereby engages Consultant, and Consultant accepts such engagement,
     to provide services ("Services") in accordance with the terms and
     conditions set forth in this agreement. Specifically, Contractor shall
     provide creative and editorial direction for the projects and game
     development undertaken by Company in the same manner and of the same
     quality as was provided by Consultant pursuant to the agreement between the
     parties dated July 31, 2004 (the "Other Agreement"), and/or as may be
     otherwise reasonably requested by the Chairman of Company.

2.   Term of Agreement
     -----------------

     The term ("Term") of this Agreement will begin on January 1, 2005, and will
     remain in effect until July 31, 2005, unless earlier terminated by either
     party upon thirty (30) days' written notice to the other party. The parties
     shall negotiate in good faith for a possible extension of the Term of this
     Agreement, it being understood and agreed that neither party will be
     obligated to so extend the Term. If the Agreement is not to be renewed at
     the desire of either party, then whichever party is not interested in
     renewing the Agreement shall endeavor to give notice to such other party of
     its desire to not renew the Agreement by June 30, 2005.

3.   Location of Services
     --------------------

     Consultant will perform Services at the Company's various office locations
     and/or at other locations as Company's may reasonably request.

4.   Compensation and Expenses
     -------------------------

     (a) In consideration of Consultant's Services hereunder, during the Term,
     Company shall pay Consultant the sum of Eleven Thousand Six Hundred
     Sixty-Six Dollars and Sixty-Six Cents ($11,666.66) per month, payable on
     the last day of each month in which Services are rendered (and prorated as
     necessary for incomplete months).
     (b) In addition, during the Term, Company shall pay Contractor an expense
     allowance of One Thousand Dollars ($1,000) per month, and shall pay
     directly or reimburse Consultant for, the cost of her reasonable and
     pre-approved (by the Chairman of Company) air travel, hotel stays and any
     other items of expense incurred in connection with her Services hereunder.
     (c) The parties shall negotiate in good faith whether, and in what amount,
     Company shall pay a bonus to Consultant hereunder, it being understood and
     agreed that this

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     clause shall not be deemed to obligate Company to establish any bonus pay
     for Consultant nor to agree to pay a bonus.

5.   Independent Contractor
     ----------------------

     Company and Consultant agree that Consultant will act as an independent
     contractor in the performance of her Services under this Agreement. Nothing
     in this Agreement shall be construed to constitute Consultant as Company's
     partner, employee or agent, nor shall either party have authority to bind
     the other in any respect, it being intended that Contractor shall remain an
     independent contractor solely responsible for her own actions. Accordingly,
     Consultant shall be responsible for payment of all taxes, including but not
     limited to United States Federal, State and local taxes, arising out of
     Consultant's activities in accordance with this Agreement. Company will not
     make disability insurance contributions on behalf of Consultant, or obtain
     workers' compensation insurance on behalf of Consultant.

6.   Assignment and Restrictions
     ---------------------------

     Neither this Agreement nor any duties or obligations under this Agreement
     may be assigned or delegated by Consultant. During the Term of this
     Agreement, Contractor may not represent any other organizations whose
     interests may be in conflict or competitive with those of Company without
     the express written consent of the Chairman of the Company.

7.   Notices
     -------

     Except as otherwise provided herein, all notices under this Agreement shall
     be in writing and shall be given by courier or by registered or certified
     mail at the appropriate address shown above or at a substitute address
     designated by notice by the party concerned. Each notice to Company shall
     be addressed to the attention of Bruno Bonnell, Chairman, with a copy to
     Lisa Rothblum, Senior Vice President and General Counsel. Notices shall be
     deemed given when mailed, except that notice of change of address shall be
     effective only from the date of its receipt.

8.   Intellectual Property Rights
     ----------------------------

     Atari shall have full and exclusive rights in and to, ownership of and
     title to all data, drawings, designs, analyses, graphs, reports, products,
     physical property, computer programs, software code, and all inventions,
     discoveries and improvements or other items or concepts, whether patentable
     or not, which are conceived or reduced to practice during the Term and
     arising out of or related to the Services performed hereunder, whether or
     not completed during the Term. Consultant agrees to make full and prompt
     disclosure and delivery to Company of all such items and, to the extent
     that Consultant may be so requested by Company, Consultant shall promptly
     execute and deliver to Company assignments of rights to such items in a
     form satisfactory to Company. Consultant also agrees to cooperate fully
     with Company with respect to

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     the preparation, prosecution, procurement, issuance, maintenance,
     enforcement and defense of patents and/or copyrights worldwide, including
     without limitation, applications therefor.

9.   Miscellaneous
     -------------

     (a) Each party hereto, by its signature below, warrants and represents
         for itself that it has the full right, power and authority to enter
         into this Agreement.
     (b) Consultant acknowledges that in the course of rendering Services
         to Company hereunder, she will have access to, and/or shall learn about
         and/or receive information relating to Company's business, some of
         which shall constitute Company's proprietary and/or trade secret
         information. All such information shall be and remain Company's
         property and Consultant shall at all times maintain the confidentiality
         of, and act with due care and protection of, such property.
     (c) This Agreement constitutes the full agreement between Company and
         Consultant with respect to the rendition of Services hereunder, and no
         other additional promises, representations, guarantees or agreements of
         any kind shall be valid unless in writing and signed by both parties.
         Without limiting the generality of the foregoing, the parties hereto
         acknowledge and agree that (i) Consultant shall execute the Company's
         Code of Ethics, Standards of Conduct and Confidentiality (the "Code of
         Ethics Policy") that all of the members of the Company's Board of
         Directors and each of the Company's executives that hold a position of
         Vice President or higher, shall be required to execute, and the terms
         of this Agreement shall not operate to diminish the full force and
         effect of the terms of such Code of Ethics Policy; and (ii) this
         Agreement replaces and supercedes the Other Agreement, which Other
         Agreement has expired and is of no further force and effect.
     (d) THIS AGREEMENT WILL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
         STATE OF NEW YORK, EXCLUDING ITS CONFLICT OF LAW RULES. THE VENUE FOR
         ANY JUDICIAL PROCEEDING BETWEEN CONSULTANT AND COMPANY WILL EXCLUSIVELY
         BE IN THE STATE AND FEDERAL COURTS LOCATED IN THE COUNTY OF NEW YORK,
         STATE OF NEW YORK. CONSULTANT HEREBY SUBMITS TO THE EXCLUSIVE
         JURISDICTION OF SUCH COURTS IN CONNECTION WITH ANY SUCH ACTION(S).
         CONSULTANT HEREBY AGREES TO ACCEPT SERVICE OF PROCESS PURSUANT TO THE
         NOTICE PROVISIONS HEREUNDER AND WAIVES ANY AND ALL OBJECTIONS TO VENUE,
         JURISDICTION OR METHOD OF SERVICE OF PROCESS. TO THE FULLEST EXTENT
         PREMITTED BY LAW, EACH OF THE PARTIES HERETO WAIVES ANY RIGHT IT MAY
         HAVE TO A TRIAL BY JURY FOR LITIGATION ARISING OUT OF OR IN CONNECTION
         WITH THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

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In witness of the foregoing, the parties have caused this agreement to be signed
as of the date first written above.

                                                ATARI, INC.

/s/ Ann Kronen                                  By:  /s/ Harry Z. Glantz
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Ann Kronen                                      Its: Sr. VP Human Resources
Social Security #___________