<PAGE>

EXHIBIT 10.88

THIS NOTE HAS BEEN ISSUED PURSUANT TO AN EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF FEDERAL AND STATE SECURITIES LAWS AND MAY NOT BE SOLD OR
TRANSFERRED WITHOUT COMPLIANCE WITH SUCH REQUIREMENTS OR A WRITTEN OPINION OF
COUNSEL ACCEPTABLE TO THE OBLIGOR THAT SUCH TRANSFER WILL NOT RESULT IN ANY
VIOLATION OF SUCH LAWS OR AFFECT THE LEGALITY OF ITS ISSUANCE.

                          PARADIGM ENTERTAINMENT, INC.

                                 PROMISSORY NOTE

US $828,870.00                                                    MARCH 31, 2004

      WHEREAS, Atari, Inc., a Delaware corporation (the "Holder"), has provided
operating funds (the "Operating Advances") to Paradigm Entertainment, Inc., a
Delaware corporation (the "Obligor");

      WHEREAS, the aggregate amount of the Operating Advances made to date
exceed the amounts payable (the "Development Service Payables") by the Holder to
the Obligor for development services rendered to date (the amount by which the
Operating Advances exceed the Development Service Payables being the
"Overfunding Payable"); and

      WHEREAS, the Obligor and its parent entity, Infogrames Entertainment, S.A.
("IESA"), agree that the Overfunding Payable is due and owing to the Holder and
that payment of such amount shall be made in accordance with the terms of this
Note.

      FOR VALUE RECEIVED, the Obligor hereby promises to pay to the order of the
Holder, the principal sum of Eight Hundred Twenty-Eight Thousand Eight Hundred
Seventy Dollars ($828,870), with interest on the outstanding principal amount at
the rate per annum equal to the applicable Prime rate (as quoted in the Wall
Street Journal on the second to last business day of each month) plus 1.25%,
payable as set forth below.

      1.    Payments of Principal and Interest. Subject to the set off and
            acceleration provisions hereof, the principal due hereunder shall be
            payable on September 30, 2004 (the "Maturity Date").

            Obligor shall pay interest to Holder in arrears on the Maturity Date
            with respect to any interest that has then accrued and is unpaid
            under this Note. Interest shall be calculated on the basis of a year
            of 360 days and for the number of days actually elapsed. In the
            event that any payment to be made hereunder shall be or become due
            on a Saturday, Sunday or any other day which is a legal bank holiday
            under the laws of the State of New York, such payment shall be or
            become due on the next

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            succeeding business day. Any amounts of interest and principal not
            paid when due shall bear interest at the maximum rate of interest
            allowed by applicable law. All payments shall be applied first to
            accrued interest and thereafter to principal. The payments of
            principal and interest hereunder shall be made in coin or currency
            of the United States of America which at the time of payment shall
            be legal tender therein for the payment of public and private debts.
            All payments by Obligor under this Note shall be subject to the
            Holder's right of set-off and acceleration set forth herein and
            shall otherwise be free and clear without any deduction or
            withholding for any taxes or fees of any nature whatsoever, unless
            the obligation to make such deduction or withholding is imposed by
            law. The Obligor shall pay and save the Holder harmless from all
            liabilities with respect to or resulting from any delay or omission
            to make any such deduction or withholding required by law.

      2.    Prepayment. The Obligor shall have the right at any time to prepay
            the principal hereof in whole or in part, without premium or
            penalty, upon giving at least five (5) days prior written notice of
            such prepayment to the Holder, provided that interest on the
            principal hereof to be so prepaid, accrued to the date of such
            prepayment, shall be paid concurrently therewith.

      3.    Set-Off and Acceleration Rights of Holder. (a) In the event that the
            Obligor fails to make any payment due hereunder on the Maturity Date
            or earlier Event of Default, the Holder shall have the right to
            immediately set off the full amount of such delinquent payment(s)
            against any amounts then payable by the Holder to the Obligor, IESA,
            Atari Interactive, Inc. ("Interactive") or any subsidiary or
            affiliate entity of any of the above (collectively, the "Obligor
            Group Payables"), such set off to be allocated amongst the Obligor
            Group Payables in the Holder's sole discretion.

                  (b) On the first (1st) business day of each month following
            the Maturity Date hereof or earlier Event of Default, the Holder
            shall prepare an accounting of (i) any amounts then payable by the
            Holder to the Obligor (the "Holder Payables") and (ii) any amounts
            then payable by the Obligor to the Holder other than amounts payable
            hereunder (whether as reimbursement of subsequent operating expense
            advances or otherwise, the "Paradigm Payables"). If at any time the
            Paradigm Payables exceed the Holder Payables, then, on the sixth
            (6th) business day for such month, the Holder shall have the right
            to set off the full amount by which the Paradigm Payables exceed the
            Holder Payables against any Obligor Group Payables, such set off to
            be allocated amongst the Obligor Group Payables in the Holder's sole
            discretion. The above accountings shall be prepared in writing and
            furnished to the Obligor on or prior to the fourth (4th) business
            day for such month. The rights and obligations contained in this
            Section 3(b) shall survive expiration, termination or cancellation
            (whether as a result of payment hereof or otherwise) of this Note.

      4.    Covenants. (a) The Obligor covenants and agrees that, so long as
            this Note is outstanding and until payment in full of this Note, and
            the performance by the Obligor of all its other obligations arising
            hereunder, without the prior written consent of the Holder, the
            Obligor shall not create, incur, assume, or suffer to exist any
            indebtedness, except (i) indebtedness incurred pursuant to this
            Note, (ii)

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            indebtedness outstanding on the date hereof and set forth on
            Schedule A hereto; (iii) indebtedness to IESA; and (iv) trade credit
            in the ordinary course of business.

                  (b) Interactive covenants and agrees that, so long as this
            Note is outstanding and until payment in full of this Note, and the
            performance by the Obligor of all its other obligations arising
            hereunder, without the prior written consent of the Holder,
            Interactive shall not transfer, assign, sell, pledge or otherwise
            dispose of or encumber the 2,000,000 shares of Common Stock, $0.01
            par value, of the Holder issued in the name of Interactive (the
            "Shares"). Interactive further covenants and agrees that if all
            amounts hereunder are not paid in full on or before the Maturity
            Date or earlier Event of Default, Interactive shall within five (5)
            business days of the applicable Maturity Date or earlier Event of
            Default either (i) sell the Shares, in accordance with all
            applicable securities laws and Atari, Inc. policies, to any one or
            more third party purchasers and remit all proceeds from such sale(s)
            to the Holder, or (ii) transfer the Shares to the Holder at a per
            share price equal to the then current fair market value (as
            determined by the average closing price of the Common Stock of the
            Holder on the NASDAQ National Market (or such other market upon
            which the Common Stock of the Holder may then be trading) for the
            ten (10) trading days prior to the applicable Maturity Date or
            earlier Event of Default). Any monies or value received by the
            Holder as a result of the sale(s)/transfer contemplated by the
            preceding sentence shall be applied by the Holder against the
            Obligor Group Payables and shall be allocated amongst the Obligor
            Group Payables in the Holder's sole discretion.

      5.    No Waiver. No failure or delay by the Holder in exercising any
            right, power or privilege under this Note shall operate as a waiver
            thereof nor shall any single or partial exercise thereof preclude
            any other or further exercise thereof or the exercise of any other
            right, power or privilege. The rights and remedies herein provided
            shall be cumulative and not exclusive of any rights or remedies
            provided by law. No course of dealing between the Obligor and/or any
            other party acknowledging or agreeing to the terms hereof and the
            Holder shall operate as a waiver of any rights by the Holder.

      6.    Waiver of Presentment and Notice of Dishonor. The Obligor and all
            endorsers, guarantors and other parties that may be liable under
            this Note hereby waive presentment, notice of dishonor, protest and
            all other demands and notices in connection with the delivery,
            acceptance, performance or enforcement of this Note.

      7.    Assignability/Replacement. The Holder may not assign or transfer
            this Note without the prior written consent of the Obligor other
            than to any affiliate of the Holder. The Obligor may not assign or
            delegate its rights or obligations hereunder without the prior
            written consent of Holder. The respective covenants and agreements
            of the Obligor, any other party acknowledging or agreeing to the
            terms hereof, and the Holder under this Note shall be binding upon
            each of them and their respective successors and assigns. Upon
            receipt by the Obligor of evidence satisfactory to it of the loss,
            theft, destruction or mutilation of this Note, the Obligor shall
            make and deliver a new Note of like tenor, in lieu of this Note, if
            (a) in case of loss, theft or destruction, the Obligor receives
            indemnity or security reasonably

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            satisfactory to it, and (b) in the case of mutilation, this Note is
            surrendered and canceled.

      8.    Place of Payment. All payments of principal of this Note and the
            interest due thereon shall be made (a) via wire transfer to the
            following account:

            Bank: JP Morgan Chase
            Bank ABA#: 021000021
            Account#: ******(1)
            Account Name: Atari, Inc.

            or (b) to such other account, or at such other place, as the Holder
            may from time to time designate in writing to the Obligor.

      9.    Events of Default. "Event of Default," wherever used herein, means
            any one of the following events (for any reason whatsoever and
            whether such happening shall be voluntary or involuntary or come
            about or be effected by operation of law or pursuant to or in
            compliance with any judgment, decree or order of any court or any
            order, rule or regulation of any administrative or governmental
            body):

            (a)   failure to (i) pay any principal or interest on this Note on
                  or before the applicable Maturity Date and such amounts are
                  not set off in accordance with the terms hereof or otherwise
                  fully settled pursuant to the terms of Section 4(b) hereof or
                  (ii) perform or observe any covenants of the Obligor set forth
                  herein;

            (b)   if the Obligor shall:

                  (i)   admit in writing its inability to pay its debts
                        generally as they become due;

                  (ii)  file a petition in bankruptcy or a petition to take
                        advantage of any insolvency act;

                  (iii) make an assignment for the benefit of creditors;

                  (iv)  consent to the appointment of a receiver of the whole or
                        any substantial part of its property;

                  (v)   on a petition in bankruptcy filed against it, be
                        adjudicated a bankrupt; or

                  (vi)  file a petition or answer seeking reorganization or
                        arrangement under the Federal bankruptcy laws or any
                        other applicable law or statute of the United States of
                        America or any State, district or territory thereof;

            (c)   if a court of competent jurisdiction shall enter an order,
                  judgment, or decree appointing, without the consent of the
                  Obligor, a receiver of the whole or

------------------
(1) Material omitted pursuant to a request for confidential treatment and filed
    separately.

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                  any substantial part of the Obligor's property, and such
                  order, judgment or decree shall not be vacated or set aside or
                  stayed within thirty (30) days from the date of entry thereof;

            (d)   if, under the provisions of any other law for the relief or
                  aid of debtors, any court of competent jurisdiction shall
                  assume custody or control of the whole or any substantial part
                  of the Obligor's property and such custody or control shall
                  not be terminated or stayed within thirty (30) days from the
                  date of assumption of such custody or control; or

            (e)   if the Obligor is in default with respect to any of its senior
                  indebtedness.

      10.   Acceleration of Maturity; Remedies. (a) In case an Event of Default
            described in clause (a) of Section 9 above, shall have occurred and
            be continuing, the Holder may, by written notice to the Obligor,
            declare the Note then outstanding to be due and payable in whole (or
            in part, in which case any principal not so declared to be due and
            payable may thereafter be declared to be due and payable), and
            thereupon the principal of the Note so declared to be due and
            payable, together with accrued interest thereon and all fees shall
            become due and payable immediately, without presentment, demand,
            protest or other notice of any kind, all of which are hereby waived
            by the Obligor. In case of any Event of Default described in clauses
            (b), (c), (d) and (e) of Section 9 above, the principal of the Note
            then outstanding, together with accrued interest thereon and all
            fees shall automatically become due and payable, without
            presentment, demand, protest or other notice of any kind, all of
            which are hereby waived by Obligor.

            (b) The Holder may proceed to protect and enforce its rights either
            by suit in equity and/or by action at law, whether for the specific
            performance of any covenant or agreement contained in this Note or
            in aid of the exercise of any power granted in this Note, or the
            Holder may proceed to enforce the payment of all sums due upon this
            Note or to enforce any other legal or equitable right of the Holder.
            The Obligor further promises to pay reasonable attorney's fees,
            court costs and other expenses, losses, charges, damages incurred or
            advances made by the Holder in the protection and enforcement of its
            rights or caused by the Obligor's default under the terms of this
            Note.

      11.   Amendments. Any term of this Note may be amended only with the
            written consent of the Obligor and the Holder. Any amendment
            effected in accordance with this Section 11 shall be binding upon
            the Holder of this Note, each future holder of this Note and the
            Obligor and any other party acknowledging or agreeing to the terms
            hereof.

      12.   Notices. Unless otherwise provided, any notice required or permitted
            under this Note shall be given in writing and shall be deemed
            effectively given upon personal delivery to the party to be
            notified, upon delivery by facsimile transmission, or upon the third
            business day after deposit with the United States Post Office,
            postage prepaid and addressed to the party to be notified at the
            address indicated for

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            such party on the signature page hereof, or at such other address as
            such party may designate by five (5) days advance written notice to
            the other party.

      13.   Severability. In the event that one or more of the provisions of
            this Note shall for any reason be held invalid, illegal or
            unenforceable in any respect, such invalidity, illegality or
            unenforceability shall not affect any other provision of this Note,
            but this Note shall be construed as if such invalid, illegal or
            unenforceable provision had never been contained herein.

      14.   Governing Law. This Note and the rights and obligations of the
            Obligor, any other party acknowledging or agreeing to the terms
            hereof, and the Holder shall be governed by and construed in
            accordance with the laws of the State of New York (without regard to
            the principles of conflicts of laws thereof).

                            [SIGNATURE PAGE FOLLOWS]

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      IN WITNESS WHEREOF, the undersigned has caused this Note to be executed
and delivered on the date first written above.

                                        PARADIGM ENTERTAINMENT, INC.

                                        By:  /s/ Harry M. Rubin
                                             -------------------------------
                                             Name: Harry M. Rubin
                                             Title: Senior Executive Vice
                                                    President

                                            Address: 1628 Valwood Parkway, #110
                                                     Carrollton, Texas 75006
                                                     Fax: 972-488-6317

AGREED TO BY HOLDER:

ATARI, INC.

By: /s/ Lisa S. Rothblum
   ------------------------------------
   Name: Lisa S. Rothblum
   Title: Assistant Secretary

Address: 417 Fifth Avenue, 8th Floor
         New York, NY 10016
         Fax: 212-726-4239

ACKNOWLEDGED AND AGREED:

INFOGRAMES ENTERTAINMENT, S.A.

By: /s/ Frederic Chesnais
   ------------------------------------
   Name: Frederic Chesnais
   Title: Directeur General Delegue

Address: 1 Place Verazzano
         69252 Lyon Cedex 09
         France
         Fax: +33 (0)4 37 64 30 01

                       [SIGNATURE PAGE TO PROMISSORY NOTE]

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ATARI INTERACTIVE, INC.

By: /s/ Harry M. Rubin
   ------------------------------------
   Name: Harry M. Rubin
   Title: Senior Executive Vice President

Address: 50 Dunham Road
         Beverly, MA 01915
         Fax: 978-921-3520

                       [SIGNATURE PAGE TO PROMISSORY NOTE]

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                                   SCHEDULE A

                          OUTSTANDING DEBT OBLIGATIONS

                                      None.