Motorsport Games
| Company type | Public |
|---|---|
| Industry | Video games |
| Founded | 2018 |
| Headquarters | Miami , United States |
Area served | Worldwide |
Key people | Peter Moore (board member) |
| Products | NASCAR Heat series, rFactor 2, KartKraft, NASCAR Rivals, Le Mans Ultimate |
| Parent | Motorsport Network |
| Website | motorsportgames |
Motorsport Games Inc. is a United States-based video game developer and publisher focused on motorsport-themed gaming titles and organizing esports competitions, with its headquarters located in Miami, Florida. The company is publicly traded on NASDAQ under the symbol MSGM and operates as a subsidiary of Motorsport Network.
History
Established in 2018, Motorsport Games rapidly grew by acquiring a majority 53.5% ownership of 704Games, the license holder for the NASCAR video game franchise, thereby becoming its official developer and publisher.<ref> This move solidified Motorsport Games’ presence within the NASCAR gaming sector. Simultaneously, the firm collaborated with the Automobile Club de l'Ouest (ACO) to introduce the Le Mans esports series, marking its debut in competitive motorsport gaming events.
In September 2019, the company launched NASCAR Heat 4. By May 2020, development responsibilities for the NASCAR Heat series shifted from Monster Games to 704Games, culminating in the July 2020 release of NASCAR Heat 5, further consolidating its control over this vital franchise.
The year 2021 saw Motorsport Games acquire Studio 397 along with its rFactor 2 simulation racing platform. This acquisition broadened their portfolio into advanced simulation racing and resulted in rFactor 2 being designated as the official sim racing platform for the FIA Formula E championship starting in 2022.
In August 2021, Motorsport Games strengthened its executive team by appointing Peter Moore—former EA Sports President and ex-CEO of Liverpool Football Club—to its board, enhancing leadership with his extensive industry expertise.
2020 esports events
During the COVID-19 pandemic in 2020, Motorsport Games produced official esports competitions for NASCAR, 24 Hours of Le Mans, FIA Formula E World Championship, and FIA World Rallycross Championship, alongside managing the eNASCAR Heat Pro League and Virtual Race of Champions.
Partnering with Codemasters and Monster Energy—the sponsor of FIA World Rallycross Championship—the company launched the World RX Esports Invitational in April.
In June, Motorsport Games teamed up with the Automobile Club de l'Ouest and FIA World Endurance Championship to host the 24 Hours of Le Mans Virtual event on the rFactor 2 platform as a replacement for the postponed physical race. The virtual event attracted an audience of 14.2 million television viewers and garnered 8.6 million online views, receiving several accolades including the Autosport Pioneering and Engineering Award.
IPO and 2021 acquisitions
Motorsport Games went public through an Initial public offering (IPO) in January 2021, raising $69 million to finalize full ownership of 704Games as well as acquire assets from KartKraft and Studio 397. In February, it agreed to purchase the PC kart racing simulator KartKraft from Black Delta, establishing Motorsport Games Australia to oversee its continued development; this transaction concluded in March. Additionally, in March, Motorsport Games acquired Studio 397—the creators of rFactor 2—with completion finalized two months later.
By integrating Unreal Engine visuals with rFactor physics technology, Motorsport Games released NASCAR 21: Ignition in October 2021. This engine combination has been utilized across all following titles, including a British Touring Car Championship game that was under development. In June 2021, the company secured licenses to produce official IndyCar video games targeting a launch in 2023 and announced plans for a dedicated 24 Hours of Le Mans video game through agreements with both the Automobile Club de l'Ouest and FIA World Endurance Championship.
Originally slated for release in 2022, the BTCC game was postponed until 2024. In December 2022, Motorsport Games entered an equity purchase agreement with NYC-based Alumni Capital for up to $2 million in stock investments, including options totaling $10 million set to expire at the end of 2023.
By October 2023, Motorsport Games lost its NASCAR licensing rights to iRacing, which intends to release a NASCAR title in 2025. Following this development, Motorsport Games reduced its workforce by approximately 40%. That same month, TOCA ended its partnership citing "fundamental breaches" by Motorsport Games. Shortly thereafter, IndyCar terminated its licensing agreement due to Motorsport’s failure to deliver a game within the planned 2023 season.
On April 15, 2025, Motorsport Games secured a $2.5 million funding round from virtual reality technology firm Pimax.
Controversies
On March 28, 2022, U.S. District Judge Stephanos Bibas permitted investors Innovate 2 Corp., Continental General Insurance Company, and Leo Capital Holdings LLC to initiate legal action against Motorsport Games in the United States District Court for the District of Delaware. The plaintiffs accused four executives of Motorsport Games of committing securities fraud, claiming they provided misleading information regarding financial results and sales figures for the NASCAR Heat series to investors of 704Games. This purported misrepresentation allegedly allowed Motorsport Games to purchase the remaining shares of 704Games at a substantially reduced price, despite the fact that NASCAR Heat generated approximately 99% of Motorsport Games’ total net revenue. Nevertheless, on February 26, 2025, Judge Bibas ruled entirely in favor of Motorsport Games, determining that there was no proof that any statements were false at the time they were made.
In November 2022, following the resignation of its board due to disagreements over financing, Motorsport Games received a Nasdaq notice citing non-compliance. The company had reported a net loss of $7.5 million against revenues of $1.2 million for the third quarter of 2022.
January 2023 saw Motorsport Games organize the fourth edition of the virtual 24-hour Le Mans race within its simulation racing title rFactor 2. The event featured notable participants including Formula One World Champion Max Verstappen and ex-Formula One driver Romain Grosjean. However, the competition was marred by extensive server failures and frequent disconnections, which led to widespread dissatisfaction among competitors. Verstappen described the event as a "clown show," while content creator Jimmy Broadbent cautioned that such issues might damage the reputation of sim racing. Shortly thereafter, an anonymous staff member threatened to release source code for titles including NASCAR Heat 5, NASCAR 21: Ignition, KartKraft, and an unreleased IndyCar game due to unpaid salaries.
Games
- NASCAR Heat 4 (2019, released)
- NASCAR Heat 5 and Next-Gen DLC (2020, 2023)
- NASCAR 21: Ignition (2021)
- rFactor 2 (2021)
- KartKraft (2022)
- NASCAR Rivals (2022)
- Le Mans Ultimate (2024)
Cancelled games
- IndyCar (2023)
- British Touring Car Championship (2023)