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Motorsport Games Financial Report Shows Massive Losses, Why Does it Matter?

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Motorsport Games is reportedly in danger of losing the exclusive NASCAR license, and their most recent financial report showed some of why. Their second-quarter financial report was released, and they reported a net loss of $8.2 million in the second quarter of this year, which was compared to $7.5 million of net losses in the second quarter of 2022. What does this really mean for the future of Motorsport Games and NASCAR gaming as a whole?

1. Motorsport Games is Losing Money, and There is No Real Product

This is the most obvious takeaway is that Motorsport Games is not a profitable business as of right now. This quarter is not an isolated case either as the report shows $13.5 million in net losses for the first six months of 2023 compared to $23.5 million in losses during the first six months of 2022. The even bleaker note is the lack of a real product for Motorsport Games.

The last time they released a game was in 2022 when they released both Kart Kraft and NASCAR Rivals. The only thing that Motorsport Games has really released is the DLC to NASCAR Heat 5, and that does not bring in nearly as much as an actual game. On top of that, there is nothing really on the immediate horizon for Motorsport Games as none of their licenses even have trailers for games out yet.

2. This Cannot Go on Forever

At some point, something has to give. Either Motorsport Games gets its act together and gets a major influx of cash, the company goes under, or it gets bought out. Losing tens of millions in back-to-back years does not usually end well for a company.

As was mentioned in the other takeaway from earlier, there is no real product for Motorsport Games out currently. There is no way they can make really any sort of money, and, how things are going just cannot go on forever.

3. This Gives NASCAR More Ammunition to Leave

Leaving a contract like NASCAR has with Motorsport Games is very difficult to do. Financial reports like this give NASCAR an easier way out of the contract in some form if they do decide to leave. They have publicly available documents showing the exact figures that Motorsport Games is losing.

As a result, NASCAR has something they can show if they want to find a way out of the contract. Motorsport Games constantly losing money with no new NASCAR video game this year means that fulfilling their end of the contract is difficult to impossible.

4. There is Very Little Actual Movement at Motorsport Games

Aside from the release of this financial report, there has been no real movement at Motorsport Games since they revealed their Le Mans Ultimate game at the 24 Hours of Le Mans back in June. They even canceled their typical earnings call for the second quarter of 2023. With little movement and net losses on an earnings sheet, that does not spell positives for Motorsport Games as a company.

5. How Can They Make a NASCAR Game and Fulfill the Contract?

If they are constantly losing money while also working on games like the Le Mans Game and the IndyCar game, then how can they create a NASCAR video game every year? It’s just not possible if a company continues to lose money every year, especially if it is as much money as Motorsport Games loses.

If that does not happen, then Motorsport Games cannot fulfill the contract they signed with NASCAR. That could be what pulls the two entities apart.

The biggest thing to note is that Motorsport Games is losing money, and they keep on losing money. As a result, it’s hard to see how NASCAR can stick with them because of the lack of funds for a NASCAR video game. Times are bleak for Motorsport Games, but that could be a good thing for NASCAR gamers.

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Picture of Joshua Lipowski

Joshua Lipowski

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