With Motorsport Games looking for a new buyer, the future of Le Mans Ultimate looks uncertain.
It has been a tumultuous time in the sim racing space, with Motorsport Games announcing further redundancies to its workforce last week. This came after the company laid off 38 employees, which made up 40% of its workforce, last November.
In a statement, Motorsport Games confirmed that “approximately 24 employees and contractors,” primarily in the US and UK, have been laid off. These latest redundancies will impact “approximately 39%” of the workforce, reducing the remaining team to a “skeleton crew,” a source told Overtake.
“The Board of Directors has authorised management to consider strategic alternatives to maximise shareholder value, including a potential sale or merger of the Company,” the statement reads.
Following the redundancies, Motorsport Games seeks additional funding to port Le Mans Ultimate to PlayStation and Xbox consoles. Considering that the official WEC game is Motorsport Games’ only new title in the pipeline and that it can no longer sell NASCAR games after 2024 following the sale of the license to iRacing, there is suddenly a lot riding on Le Mans Ultimate’s success.
The sale of the NASCAR license provided a cash injection, but NASCAR Heat 4, Heat 5 and 21: Ignition will be removed from sale after 2024 as a result – these titles made up 55% of Motorsport Games’ revenue stream.
“We have implemented a strategic restructuring to further streamline operations, reduce costs, and strengthen our financial foundations. These changes position us to become a more agile, focused, and efficient company – one that is conscious of our forthcoming operating requirements as well as within-reach growth opportunities”, Motorsport Games CEO Stephen Hood commented.
“With our core talent and cutting-edge technology intact, we are excited about the future. The successful launch of Le Mans Ultimate, our pivotal role in F1 Arcade, and our plans for an innovative new title are clear signals of our commitment to driving the company forward.”
Launched in February this year, Le Mans Ultimate has proven popular in the sim racing community.
During a recent earnings call, Hood confirmed that the early access release sold more in 36 hours than Motorsport Games projected in ten days.
Since the initial early access release, the official WEC game continues to evolve, with recent updates and DLC adding new 2024 Hypercars, new circuits, and asynchronous co-op multiplayer.
Looking ahead, Hood recently confirmed to OverTake that Le Mans Virtual is set to return in late 2024 or early 2025 with driver swaps after a hiatus this year. Whether this is still the case remains to be seen as the future of Le Mans Ultimate, which remains in early access with no final confirmed release date, looks uncertain.
Are you worried about Le Mans Ultimate following the Motorsport Games layoffs? Let us know in the comments below, or join the discussion in the forum.
It has been a tumultuous time in the sim racing space, with Motorsport Games announcing further redundancies to its workforce last week. This came after the company laid off 38 employees, which made up 40% of its workforce, last November.
In a statement, Motorsport Games confirmed that “approximately 24 employees and contractors,” primarily in the US and UK, have been laid off. These latest redundancies will impact “approximately 39%” of the workforce, reducing the remaining team to a “skeleton crew,” a source told Overtake.
Motorsport Games For Sale Following Layoffs
In an unprecedented revelation, Motorsport Games has announced it is potentially looking for a sale or merger as it considers “strategic alternatives.”“The Board of Directors has authorised management to consider strategic alternatives to maximise shareholder value, including a potential sale or merger of the Company,” the statement reads.
Following the redundancies, Motorsport Games seeks additional funding to port Le Mans Ultimate to PlayStation and Xbox consoles. Considering that the official WEC game is Motorsport Games’ only new title in the pipeline and that it can no longer sell NASCAR games after 2024 following the sale of the license to iRacing, there is suddenly a lot riding on Le Mans Ultimate’s success.
The sale of the NASCAR license provided a cash injection, but NASCAR Heat 4, Heat 5 and 21: Ignition will be removed from sale after 2024 as a result – these titles made up 55% of Motorsport Games’ revenue stream.
“We have implemented a strategic restructuring to further streamline operations, reduce costs, and strengthen our financial foundations. These changes position us to become a more agile, focused, and efficient company – one that is conscious of our forthcoming operating requirements as well as within-reach growth opportunities”, Motorsport Games CEO Stephen Hood commented.
“With our core talent and cutting-edge technology intact, we are excited about the future. The successful launch of Le Mans Ultimate, our pivotal role in F1 Arcade, and our plans for an innovative new title are clear signals of our commitment to driving the company forward.”
What Does The Future Hold For Le Mans Ultimate?
These Motorsport Games layoffs raise big questions about Le Mans Ultimate’s future.Launched in February this year, Le Mans Ultimate has proven popular in the sim racing community.
During a recent earnings call, Hood confirmed that the early access release sold more in 36 hours than Motorsport Games projected in ten days.
Since the initial early access release, the official WEC game continues to evolve, with recent updates and DLC adding new 2024 Hypercars, new circuits, and asynchronous co-op multiplayer.
Looking ahead, Hood recently confirmed to OverTake that Le Mans Virtual is set to return in late 2024 or early 2025 with driver swaps after a hiatus this year. Whether this is still the case remains to be seen as the future of Le Mans Ultimate, which remains in early access with no final confirmed release date, looks uncertain.
Are you worried about Le Mans Ultimate following the Motorsport Games layoffs? Let us know in the comments below, or join the discussion in the forum.
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