LOS ANGELES (Reuters) - Video game company Atari Inc. (ATAR.O: Quote, Profile, Research) said on Tuesday it has appointed David Pierce as its president and chief executive officer, effective immediately.

Ending a CEO search that started in June 2005, Pierce takes over from Bruno Bonnell, who will continue to serve as chairman and chief creative officer.

Atari said Pierce has more than 20 years of executive management experience with major entertainment companies such as Universal Pictures, MGM, Sony Pictures and Sony Music Entertainment.

"The company has been suffering with a void in senior management for several quarters and the appointment of Mr. Pierce is one critical piece of the puzzle," said Edward Williams, a video game analyst at BMO Capital Markets, who has a "market perform" rating on the stock.

Atari, a New-York based subsidiary of France's Infogrames Entertainment (IFOE.PA: Quote, Profile, Research), last month posted a fiscal first-quarter net loss of $7.1 million.

Atari, which is in the midst of turnaround efforts, has slashed costs and sold assets as it weathers a transition to new video game console technology that dampened industry sales.

As executive vice president and general manager of Sony BMG Music Entertainment, Pierce spearheaded the restructuring and turnaround of Sony Wonder, its children's music and home video arm, Williams said in a client note.

Atari shares ended a penny higher at 70 cents, after touching as high as 74 cents in regular Nasdaq trade. The stock has fallen sharply since trading above $3 in June 2005.

(Additional reporting by Paul Thomasch and Mark McSherry in New York)

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