Ahead of the expected December update to Le Mans Ultimate, Motorsport Games reported its Q3 earnings, hinting at the future of the company - and subscription services within LMU to be expected next month.
Before 2024 reaches its conclusion, Le Mans Ultimate is due another update that will also introduce the first batch of LMGT3 cars to the sim. That should not be the only addition of note, however: In publisher Motorsport Games' Q3 2024 earnings call, company CEO Stephen Hood mentioned that subscription services for the online system in LMU and rFactor 2, called RaceControl, "should go live next month".
That does not mean that the entire online experience will be subscription-based, however. Instead, it will focus on Online Championships and possibly custom servers for leagues or similar uses. For MSG, the model is supposed to become an additional revenue stream while keeping the core online elements free for players.
While Motorsport Games continued not to turn a profit in Q3 of 2024, it did substantially decrease its losses compared to the previous quartes of this year. For the period between April and June, the company reported a net loss of $3,563,507, which is down to just $9,827. This is a result of the ongoing restructuring measures in the company that included reduction of its workforce by about 40%.
Image: Motorsport Games
Nonetheless, Hood's outlook remains positive, as he underscored in the earnings call: "I am upbeat about the future of the studio and its technology. We have shown that a united and focused team of passionate, talented individuals can defy the odds and transform our organization into the forward-thinking games company we were always meant to be."
Part of this optimisim is also the partnership with Kindred Concepts, the creators of F1 Arcade. A fourth venue has recently opened in Washington, D.C., providing MSG with additional licensing revenue as the simulator-equipped bars run software based on rFactor 2. Another US venue is planned to open in Denver, Colorado in 2025, according to Racer.com.
What are your hopes for the future of Le Mans Ultimate? Let us know in the comments below and join the discussion in our LMU forum!
Before 2024 reaches its conclusion, Le Mans Ultimate is due another update that will also introduce the first batch of LMGT3 cars to the sim. That should not be the only addition of note, however: In publisher Motorsport Games' Q3 2024 earnings call, company CEO Stephen Hood mentioned that subscription services for the online system in LMU and rFactor 2, called RaceControl, "should go live next month".
That does not mean that the entire online experience will be subscription-based, however. Instead, it will focus on Online Championships and possibly custom servers for leagues or similar uses. For MSG, the model is supposed to become an additional revenue stream while keeping the core online elements free for players.
While Motorsport Games continued not to turn a profit in Q3 of 2024, it did substantially decrease its losses compared to the previous quartes of this year. For the period between April and June, the company reported a net loss of $3,563,507, which is down to just $9,827. This is a result of the ongoing restructuring measures in the company that included reduction of its workforce by about 40%.
Image: Motorsport Games
CEO Hood Remains "Upbeat"
While this does not eliminate the fact that "the Company does not believe it has sufficient cash on hand to fund its operations over the next year", according to the press release relating to the financial release. As of October 2024, Motorsport Games is looking for an investor or buyer to continue work on Le Mans Ultimate past the two updates that are yet to be delivered.Nonetheless, Hood's outlook remains positive, as he underscored in the earnings call: "I am upbeat about the future of the studio and its technology. We have shown that a united and focused team of passionate, talented individuals can defy the odds and transform our organization into the forward-thinking games company we were always meant to be."
Part of this optimisim is also the partnership with Kindred Concepts, the creators of F1 Arcade. A fourth venue has recently opened in Washington, D.C., providing MSG with additional licensing revenue as the simulator-equipped bars run software based on rFactor 2. Another US venue is planned to open in Denver, Colorado in 2025, according to Racer.com.
What are your hopes for the future of Le Mans Ultimate? Let us know in the comments below and join the discussion in our LMU forum!
