A decision Penske Entertainment didn’t want to make with its beleaguered video game vendor was made Tuesday when Motorsport Games announced, “Suspension of previously planned INDYCAR ride development, to reduce operating expenses while eliminating projects that are underperforming or unlikely to generate revenue.”
This news comes on the day the company held its third-quarter earnings call, which delivered more bad news Millions of dollars in losses were confirmed. The discontinuation of its work on the IndyCar video game, which was announced in collaboration with the NTT IndyCar Series in 2021 before its release in 2023, comes as part of… “Additional cost-saving measures [including] The recent closure of our Australian development studio, with corresponding reductions in global headcount.
Despite showing encouraging results in the early stages of the relationship with IndyCar, the prospect of the game being completed and released took a hit earlier in the year when Motorsport Games’ ongoing financial issues delayed its release until 2024.
“A great deal of work and collaboration has gone into developing our title with Motorsport Games.” Penske Entertainment said in a statement. “We are disappointed that they do not have the resources to continue development. We will announce next steps in due course.”
Although the deal ended in failure, which many expected when it was announced more than two years ago, Penske Entertainment will need to evaluate its legal options and regain control of the gaming license it sold to Motorsport Games before it can partner with a new vendor. .
For its part, Motorsport Games expressed no intention of relinquishing control of the property, noting in the forward-looking statements section of its earnings statement that “The company plans to identify opportunities to resume development of its INDYCAR title elsewhere within the company following the closure of the Australian studio.”
Motorsport Games’ recent losses include NASCAR, which has confirmed a new partnership in October With iRacing to create new games starting in 2025, and the TOCA British Touring Car Championship, which confirmed on Monday it would sever ties And cancel his contract with the company “Due to continued fundamental violations of the Agreement by Motorsport Games.”
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