Penske Entertainment was faced with a decision it didn’t want to make when Motorsport Games announced on Tuesday the suspension of the development of the previously planned INDYCAR game. This move was aimed at decreasing operating expenses and removing underperforming projects in order to generate revenue.
The announcement coincided with Motorsport Games’ third-quarter earnings call, which delivered more bad news as millions of dollars of losses were confirmed. The decision to halt work on IndyCar’s video game, which was supposed to be released in collaboration with the NTT IndyCar Series in 2023, is part of the company’s cost-saving measures, including the recent closure of its Australian development studio and global headcount reductions.
Although the game showed promising results in the early stages of the collaboration with IndyCar, financial issues forced a delay in its release to 2024, casting doubt on its completion and release.
Penske Entertainment expressed disappointment in Motorsport Games’ inability to continue development, stating that they will announce their next steps in due course. With the deal ending in failure, Penske Entertainment is now faced with assessing legal options and regaining control of the gaming license it sold to Motorsport Games before seeking a new vendor.
On the other hand, Motorsport Games has no intention of relinquishing control of the property and plans to resume development of its INDYCAR title elsewhere within the business following the closing of its Australian studio, according to the Forward-Looking Statements section of the earnings release.
Recent losses for Motorsport Games also include partnerships with NASCAR and TOCA’s British Touring Car Championship, both of which have ended due to ongoing breaches of agreements by the company.
