It was active until 1996 when WMS Industries, the owners of the Williams, Bally and Midway arcade brands, bought the company.

Time Warner Interactive, was responsible for games, such as Rise of the Robots, Primal Rage, and T-MEK.

Atari Games would continue to operate under its own name until March 29, 1996, when both it and Time Warner Interactive were bought by WMS Industries and was subsequently absorbed into Williams Entertainment (later renamed Midway Home Entertainment), while Atari Games became part of Midway, and eventually was renamed Midway Games West in 1999.

Both subsidiaries were short-lived; Time Warner Interactive was formed from the Atari Games acquisition in 1993 and sold to WMS Industries on March 29, 1996,[6] while Time Warner Interactive Japan dissolved in the same year due to WMS not seeing the merit of having a Japanese division in Japan due to how very costly it is for Midway to have a Japanese video game studio in their hands in Lost Decade situation, and European division of Time Warner Interactive (including Renegade Software) existed only two years before being sold to GT Interactive in November 1996 (GT Interactive are best known for distribution of Doom II, Duke Nukem 3D, and Quake as shareware).

[7] Several titles begin development by TWI, including Wayne Gretzky's 3D Hockey, was eventually released by Williams Entertainment after the acquisition.