Motorsport Games, which holds the exclusive rights to develop video games that feature the NTT IndyCar Series revealed on Tuesday that it has put the upcoming game’s development on hold.
The official IndyCar game, which Motorsport Games was supposed to release this year, has officially gotten its development terminated. The company secured the rights to develop the series last year.
The report was released to investors during the company’s third-quarter earnings call, where management gave an update on the company’s financial status.
The strategic sale of Motorsport Games’ NASCAR license to iRacing, which was made public a month ago, was highlighted by executives as they outlined the company’s ongoing cost reduction plan.
The confirmation of reports that the company was shrinking through layoffs and the closure of one of its major development studios in Australia was the most significant aspect of the conference call to discuss earnings.
The anticipated IndyCar video game was being developed by the studio, but has since been put on hold.
“This quarter has continued to be one of business transformation,” said Motorsport Games CEO Stephen Hood. “We have continued to reduce costs under the previously announced 2022 restructuring programme with the first signs of forward momentum starting to become apparent.
“This includes our recent announcement on the strategic sale of our NASCAR licence, which we believe improves the business outlook by reducing our financial commitments and allowing the company to focus its limited resources on near-term projects that are anticipated to come to market.
“We retain the ability to continue selling the NASCAR game back catalogue through to the end of 2024 ahead of an anticipated 2025 game by the new developer, which we believe will offer some revenue stability as we aim to bring new products to market, albeit with this revenue expected to decline over time.
“Additional 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, to decrease operating expenses whilst also removing projects that are underperforming or are unlikely to generate revenue.”
On July 2021, the first official announcement was made that IndyCar would get its first video game license in almost twenty years, with a 2023 release window.
Motorsport Games has experienced turbulent times since then. The company’s stock has dropped from $130 to just under $3 per share over the last two years despite a 1-for-10 reverse stock split.
The company had previously denied that it was no longer working on the IndyCar game, but the announcement was the first indication that the game would either launch later than expected or would never happen.
As stated during the earnings call, Motorsport Games is still officially planning to restart development of the game at some point in the future.
Since the racing series appears to be waiting for the game company to default on previously set deadlines before enforcing a breach of contract, Motorsport Games continues to hold the license for the IndyCar game.
Digital versions of the Dallara IR-18 chassis are still available on iRacing’s platform, but since Motorsport Games acquired the exclusive license, iRacing is not allowed to host digital versions of actual events, like the Indianapolis 500.