The decision Penske Entertainment didn’t want to make with its beleaguered video game vendor was made for it on Tuesday when Motorsport Games announced, “the suspension of the development of our previously planned INDYCAR game, to decrease operating expenses whilst also removing projects that are underperforming or are unlikely to generate revenue.”
The news comes on the day where the company held its third-quarter earnings call, which delivered more bad news as millions of dollars of losses were confirmed. Halting its work on IndyCar’s video game, which was announced in collaboration with the NTT IndyCar Series in 2021 ahead of a 2023 release, comes as part of “Additional cost-saving measures [including] the recent closure of our Australian development studio, with corresponding global headcount reductions.”
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Despite showing encouraging results in the early stages of the relationship with IndyCar, the game’s likelihood of being completed and released suffered a blow earlier in the year when Motorsport Games’ ongoing financial issues forced the delay of its release to 2024.
“Significant work and collaboration has gone into the development of our title with Motorsport Games,” Penske Entertainment said in a statement. “We’re disappointed they do not have the resources to continue development. We’ll announce next steps in due course.”
Although the deal ended in failure, which was predicted by many upon its announcement more than two years ago, Penske Entertainment will need to assess 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 intent to relinquish control of the property, citing in the Forward-Looking Statements section of the earnings release that “the Company’s plans to identify opportunities to resume development of its INDYCAR title elsewhere within the business following the closing of its Australian studio.”
Recent losses for Motorsport Games include NASCAR, which confirmed a new partnership in October with iRacing to create new games starting in 2025, and TOCA’s British Touring Car Championship, which confirmed on Monday that it is severing ties and cancelling its contract with the company “due to ongoing fundamental breaches of the agreement by Motorsport Games.”