Following $35.9 Million Loss, $10.8 Million Giant Gets NASCAR’s Rights for a 2025 Surprise After CEO’s Shocking Exit

iRacing has primarily been known for its racing simulators for amateur and professional racers. In the most recent turn of events, it has become clear that this image of the company, which boasts a market cap of $10.8 million, is quickly about to change. The announcement of iRacing’s acquisition of NASCAR’s console video game license just dropped and it is being regarded by many as the biggest shift in the promotion’s gaming arm in recent history. The transfer of the license from Motorsport Games to iRacing comes in the aftermath of the former reporting a loss of $35.9 million in 2022.

With many troubles surrounding Motorsport Games in recent times, the transfer was an expected move, and NASCAR’s decision to announce iRacing as its next partner has thrilled fans to the core.

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Over the last several years, the racing promotion has struggled to find a developer who will create a game that will satisfy the fans and bring the real-world joy of stock car racing to gaming consoles. After trying its luck with many including EA Sports, 704Games, and Motorsport Games, the mantle is now being passed on to iRacing. Along with the announcement, the developer also revealed its intention to release a video game in 2025. Interestingly, iRacing is owned by Fenway Sports Group’s John Henry. The name has holdings in some of the biggest entities [Liverpool F.C., Boston Red Sox, RFK Racing, and more.] in the world arena.

With Tony Gardner, iRacing President, calling it an “opportunity we couldn’t pass up,”, Nick Rend, the Managing director of esports and gaming at NASCAR, said, “We thank Motorsport Games for its efforts over the years and will work diligently with iRacing to deliver a console game that’s exciting for the gaming community and allows our fans to connect with the sport in an impactful, meaningful way.”

Despite its best efforts, 704Games and Motorsport Games were never able to garner the positivity of fans. With the graphics and the gameplay of their releases drawing continual criticism, the company’s financial troubles just about were the last nails in its coffin.

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The issues that forced Motorsport Games to transfer the license that it held for long

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After the departure of Dmitry Kozko, Motorsport Games’ former CEO, Stephen Hood took up the high seat. The shift was the result of the $35.9 net loss that the company had reported in 2022. Making moves that will bring the company back to above the profit line, the new man-in-charge has been taking many actions and this latest decision to forgo the gaming license is one such move. Talking about it, Hood said, “After careful consideration, it became apparent that it is in the best interest of Motorsport Games to concentrate our resources around alternative assets and revenue growth opportunities. We believe that this is a continued shift toward quality.”

Continuing on how the move was a major step towards the pre-decided direction, he said, “This sale to iRacing, a preferred NASCAR partner, is expected to be beneficial to all parties. We believe it will allow us to rebalance our immediate cash needs, reduce our contractual and financial obligations and double-down on near-term revenue-generating releases already in advanced development.” Notably, one of the projects in the lineup for Motorsport Games is the INDYCAR game.

The company had taken over the license when it acquired 704Games back in 2018. In the time since, it released NASCAR Heat 5, NASCAR 21: Ignition and NASCAR Rivals. Providing solace for the fans who bought these games, it has been said that they will remain supported and available through 2023 and 2024. However, it is highly likely that fans will rather look forward to the 2025 release by iRacing with the expectation that it covers the mistakes of its predecessors.

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