<PAGE>
                                                                   Exhibit 10.63

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

This agreement dated July 8, 2003 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 as reasonably requested by the Chairman
     of Company.

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

     The term ("Term") of this Agreement will begin on July 1, 2003 and will
     remain in effect until December 31, 2003, 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 contract is not to be renewed at
     the desire of either party, then at least 30 days notice, prior to the end
     of the contract, should be provided to the other party.

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 Ten Thousand Eight Hundred
     Thirty-Three Dollars and Thirty-Three Cents ($10,833.33) 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 clause shall not be deemed to obligate Company to
     establish any bonus pay for Consultant nor to agree to pay a bonus.

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

     Company and Consultant agree that Consultant will act as an independent
     contractor in the performance of her duties 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 competition with those of Company without
     the express written consent 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 the preparation, prosecution, procurement,
     issuance, maintenance, enforcement and defense of patents and/or copyrights
     worldwide or applications therefor.

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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, 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 this
           agreement replaces and supercedes the agreement (the "Other
           Agreement") dated as of July 29, 2002, between Company and
           Contractor, 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 PERMITTED 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.

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

ATARI, INC.

                                                By: /s/ Harry Z. Glantz
/s/ Ann E. Kronen                                  ----------------------------
------------------------
Ann Kronen                                      Its: Sr. V.P., Human Resources
                                                   ----------------------------
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                               [ATARI LETTERHEAD]


December 15, 2003

Ann Kronen
19154 Pacific Coast Highway
Malibu, CA. 90265

              RE:  Consultant Agreement

Dear Ann:

Reference is made to the Consultant Agreement between Atari, Inc. ("Atari") and
you dated July 8, 2003. This letter, when fully executed by Atari and you, shall
constitute the further agreement between the parties to extend the Term of the
Consultant Agreement through and including June 30, 2004, instead of December
31, 2003, under the same terms and conditions as set forth in the Consultant
Agreement, it being expressly understood and agreed that except as expressly set
forth herein, the Consultant Agreement is and shall remain in full force and
effect without limitation or exception.

If the foregoing is acceptable to you, please so indicate by signing the
enclosed copy of this letter agreement and returning it to the undersigned.

                                    Very truly yours,

                                    ATARI, INC.



                                    By: /s/ Harry Z. Glantz
                                       --------------------------------------
                                       Harry Z. Glantz
                                       Senior Vice President, Human Resources


Accepted by:


/s/ Ann Kronen                          12/16/03
------------------------------------------------
Ann Kronen                                  Date