Motorsport Games Suspends Indycar Game Development, Pushes Back Le Mans Ultimate Release
In a recent financial update, Motorsport Games announced that development on their Indycar game has been suspended and the upcoming Le Mans Ultimate will be released earlier next year. The news was shared during Motorsport Games’ third-quarter earnings report.
Business Transformation and Cost-Saving Measures
Motorsport Games CEO Stephen Hood acknowledged the quarter as one of business transformation. He touched on the sale of the NASCAR license and additional cost-saving measures.
Hood mentioned the recent closure of Motorsport Games’ Australian development studio with corresponding global headcount reductions. He also announced the suspension of development on the Indycar game to decrease operating expenses and remove underperforming projects.
Le Mans Ultimate Delayed, Indycar Payment Guaranteed
Alongside the IndyCar game suspension, Le Mans Ultimate was pushed back from December 2023 to February 20, 2024.
Motorsport Games reported a loss of $3.5 million during the third quarter, bringing its total losses for the year to $16.7 million.
Originally planned for release in 2023, the Indycar game was delayed due to development team layoffs at Motorsport Games’ Australian studio. The team responsible for creating the game was let go last week.
Indycar Game Development Suspended: What’s Happening?
Stephen Hood, CEO of Motorsport Games, shared that the company had undergone significant transformation during the third quarter.
Selling NASCAR License and Cost-Saving Measures
Hood mentioned the sale of the NASCAR license as part of these changes. He also disclosed the closure of the Australian development studio, leading to global headcount reductions.
IndyCar and Le Mans Ultimate: Delayed and Suspended
As a result of these measures, the development of IndyCar was suspended, and Le Mans Ultimate was pushed back from December 2023 to February 20, 2024.
Financial Losses and IndyCar Licensing Agreement
During the third quarter, Motorsport Games reported a loss of $3.5 million, bringing their total losses for the year to $16.7 million.
Originally scheduled for release in 2023, IndyCar faced a setback when Motorsport Games underwent significant changes, leading to the suspension of the game and the layoffs at its Australian studio.
Uncertainty Surrounds IndyCar Game
One source expressed concern about the game’s future, stating, “We didn’t know what was going to happen” after the layoffs. Another source reported that builds of the game had been sent to QA weekly, with updates and improvements, suggesting that progress was being made.
Contractual Obligations
Despite the uncertainty, IndyCar remains contractually obligated to receive a “minimum guaranteed annual payment” from Motorsport Games within 60 days of the start of 2024. Failure to make this payment could result in IndyCar revoking its license from Motorsport Games.
Motorsport Games Announces Suspension of Indycar Game Development and Delay of Le Mans Ultimate
During Motorsport Games’ third-quarter earnings report for 2023, the company announced that development of its IndyCar game has been suspended and the release date for Le Mans Ultimate is being pushed back to early 2024.
CEO Speaks About Business Transformation
Stephen Hood, CEO of Motorsport Games, discussed the company’s ongoing business transformation during the earnings report. He mentioned the sale of the NASCAR license and cost-saving measures such as the closure of the Australian development studio and the suspension of IndyCar game development.
IndyCar Game Delayed, Development Team Let Go
Originally planned for release in 2023, the IndyCar game has been suspended and delayed to 2024. Last week, Motorsport Games underwent layoffs, resulting in the termination of the development team responsible for the game at the Australian studio.
Le Mans Ultimate Pushed Back to Early 2024
In addition to the suspension of IndyCar, Motorsport Games announced that Le Mans Ultimate would be pushed back from its initial December release date to February 20, 2024.
CEO Stephen Hood on Business Transformation
“This quarter has continued to be one of business transformation,”
Motorsport Games CEO Stephen Hood stated during the third-quarter earnings call, alluding to the sale of the NASCAR license. He further explained that “cost-saving measures have included the recent closure of our Australian development studio, with corresponding global headcount reductions, and the suspension of the development of our previously planned IndyCar game.”
Losses and Delayed Release for Indycar
During the third quarter of 2023, Motorsport Games reported a loss of $3.5 million, bringing their total losses for the year to $16.7 million. The Indycar game, which was originally planned for release in 2023, has been suspended due to cost-saving measures and underperformance. The team responsible for the game’s development at Motorsport Games’ Australian studio was let go last week.
Le Mans Ultimate Pushed Back to Early 2024
Motorsport Games also announced that the release date for Le Mans Ultimate has been pushed back from December to February 20, 2024. This decision was made in conjunction with the suspension of IndyCar development and global headcount reductions to decrease operating expenses.
CEO’s Perspective on Business Transformation
Motorsport Games CEO Stephen Hood shared his perspective on the company’s transformation during the earnings call. He mentioned that the third quarter has been a period of significant change for the business, including the sale of the NASCAR license and cost-saving measures such as the closure of the Australian development studio and the suspension of IndyCar game development.
Impact on IndyCar Game Development
The suspension of IndyCar game development and the resulting layoffs at Motorsport Games’ Australian studio has left uncertainty regarding the future of the project. One source reported that they didn’t know what was going to happen with the game after the layoffs, while another insisted that progress was being made and updates were being provided to QA each week. However, the marketing department has not been informed about when to start promoting the game, despite marketing materials already being produced.
Financial Implications
Motorsport Games reported a loss of $3.5 million during the third quarter, bringing its total losses for the year to $16.7 million. The delay and suspension of projects, including IndyCar, are likely contributing factors to these financial struggles. Despite the delays and setbacks, Motorsport Games is still obligated to make a “minimum guaranteed annual payment” to IndyCar within 60 days of the start of 2024. Failure to do so could result in revocation of the license for the IndyCar game.
Indycar Game Development Halted, Le Mans Ultimate Delayed
In a recent financial report, Motorsport Games announced that development on the Indycar game has been suspended and the release of Le Mans Ultimate has been pushed back to early 2024.
Business Transformation Continues
Stephen Hood, CEO of Motorsport Games, stated that “this quarter has continued to be one of business transformation.” This statement came following the sale of the NASCAR license.
Cost-Saving Measures Taken
Additional cost-saving measures included the closure of Motorsport Games’ Australian development studio and corresponding
