"Mermaids of Atlantis" is basically a non-adult version of Bubble Bath Babes. Only instead of a naked girl there is a mermaid who is wearing a bra. This mermaid lies on the bottom of the play field and sends colored bubbles into the air. What you must do is arrange the bubbles in such a way that they build a row of 4 or more of the same color. The game uses the same graphics (except the mermaid) and gameplay mechanics as the original, adding three difficulty settings, the possibility to begin from any stage, and a background story: the evil underwater emperor O-Dinten has sealed all the games (yes, that's right!) into bubbles, and you must complete the game to unlock them and to bring entertainment back to the sea people.
In a year 2000 interview with NES WORLD, Phil Mikkelson, Former AVE producer and art director, said:
"If you play the game or read the box you'll find that the Evil Emperor Odnetnin (Nintendo backwards) has encased all the undersea merpeople's toys (games) in protective bubble (key chip), and makes them pay a licensing fee to play their own games."
As a corrective side note to this quote the emperor's name is actually O-Dinten which is an anagram for Nintendo missing an extra letter N.