Xbox co-creator Rob Wyatt has filed a lawsuit against Atari for failing to pay him for the design work he did in creating the Atari VCS console. From a report: Tin Giant, Wyatt’s company, filed the lawsuit in federal court in Colorado, alleging breach of contract and defamation. Tin Giant said that Atari owes it in excess of $261,720. Wyatt, a co-creator of the Xbox and cofounder of The Last Gameboard, said in an interview last year that he quit as lead architect for Atari. He alleged that Atari did not pay his company, Tin Giant, for six months of work. Atari CEO Fred Chesnais declined to comment in a statement, saying that he had not received a copy of the lawsuit yet. Atari has not developed a game console for more than 20 years.

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Source:: Slashdot