What’s Happening?

Motorsport Games, the former exclusive developer for NASCAR console games, is back in the news following their Q3 earnings release. NASCAR and Motorsport Games parted ways following a rough launch of multiple games.

• The 2024 Q3 earnings release from Motorsport Games revealed that the former NASCAR developer had a gross profit of $1,086,223, up from its 2023 Q3 gross profit of $862,392. Furthermore, it only posted a net loss of $573,025, which was much better than its 2023 Q3 net loss of $3,534,132.
• However, the release states that the company only has $0.5 million in cash on hand, down from $0.8 million in September of this year. On page two, the release says, “The Company does not believe it has sufficient cash on hand to fund its operations over the next year and that additional funding will be required in order to continue operations.”
• As grim as that sounds, the hope for more cash sounds even more futile. Page two further states:

“There can be no assurances that the Company will be able to secure additional liquidity through the means referenced above, nor can there be any assurances that the Company can sufficiently reduce costs and restructure its business to sufficiently lower its cash burn to sustainable levels and therefore meet its ongoing cash requirements.”

• This means that Motorsport Games needs money to keep going, as they stated on page two. Most importantly, they cannot ensure that the avenues they are exploring to get that funding are possible.
• NASCAR and Motorsport Games parted ways in October 2023 when Motorsport Games sold the license to iRacing, which is deep into production for their console game NASCAR ’25. Motorsport Games was once the only NASCAR console game developer, and it seemed to roll gutter ball after gutter ball, including the “buggy” NASCAR 21: Ignition and their final release, NASCAR: Rivals.

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