In a form intended for investors, Motorsport Games explains that this restructuring represents no less than 40% of its international workforce (teams based in the United Kingdom and Australia are the most affected) and that the objective is to reduce operational expenses annuals. The cost of this restructuring program is estimated at between $400,000 and $500,000, taking into account severance pay and employee termination costs.
It must be said that the financial situation of Motorsport Games is more than alarming. Listed on the stock exchange since January 2021, the publisher recorded a net loss of $13.2 million in the first half of 2023 (compared to a net loss of $23.4 million a year earlier) for a turnover of 3.4 million dollars ($5.3 million a year earlier) and liquidity of only $1.4 million as of July 31.
The measures were therefore not long in coming. On October 5, Motorsport Games announced the sale of its main license, NASCAR, to iRacing.com Motorsport Simulations. NASCAR games had been developed since 2015 by the 704Games studio, which became a subsidiary of Motorsport Games in 2018. In this press release, Motorsport Games stressed that other measures would be studied to avoid bankruptcy, which brings us to today’s layoffs.
TOCA denounces “fundamental violations” by Motorsport Games
But the drain doesn’t stop there, because Motorsport Games has just lost another license, and not of its own accord this time. Holder of the British Touring Car Championship, TOCA has just ended the contract which linked it to Motorsport Games since May 2020 concerning the development of a BTCC game, “ due to fundamental violations of the agreement committed by Motorsport Games “, we can read. “ Motorsport Games was given sufficient latitude to remedy these contractual violations, but unfortunately failed to do so », estimates TOCA. Supposed to be released in 2022, this BTCC game had been pushed back to 2024. It remains to be seen whether another specialist will take over, especially since the name TOCA should bring back some memories to the people at Codemasters.
In any case, it is a thorn the size of a beam in the already well punctured tire of Motorsport Games, which was counting more on the BTCC license than on its IndyCar game project, of which Motorsport Games is studying the possibility of a sale just like the NASCAR license. In the hands of the publisher therefore remain the rights to the 24 Hours of Le Mans (Le Mans Ultimate is supposed to be released in December on Steam) as well as the niche simulations rFactor 2 and KartKraft. Incidentally, the 2023 edition of the virtual 24 Hours of Le Mans, organized by Motorsport Games on rFactor 2 in January, had spun off the track in the presence of superstar Max Verstappen, hit by technical problems and other disconnections, to the point that observers judged that the event had done more harm than good to the world of racing. simracing.
- Also read | IndyCar will have its official game at Motorsport Games