The upcoming IndyCar game from Motorsport Games is officially shelved. An SEC filing from November 8, 2023, made public on November 14, 2023, confirms that Penske Entertainment Corp is terminating its licensing agreements with the Miami-based developer.
This news follows shortly after Motorsport Games’ Q3 earnings call, during which the company confirmed it was on hold due to the closure of its Australian studio.
Not surprisingly to most fans, Penske Entertainment Corp made a statement the night of the Q3 earnings call: “Significant work and collaboration have gone into the development of our title with Motorsport Games. We’re disappointed they do not have the resources to continue development. We’ll announce next steps in due course.”
And they did announce their next steps indeed. From the SEC filing, it states: “INDYCAR LLC stated that its decision to terminate the INDYCAR License Agreements was due to the company’s alleged failure to satisfy certain of its obligations under the INDYCAR License Agreements, including making INDYCAR racing series video gaming products available in the United States and facilitating a minimum number of INDYCAR racing series esports events, in each case, as specified in the applicable INDYCAR License Agreement.”
The filing also states that Motorsport Games is “evaluating the validity of INDYCAR LLC’s notice of termination, including demands for certain payments under the INDYCAR License Agreements, as well as the company’s options under the INDYCAR License Agreements.”
From this filing, the termination of Motorsport Games’ deal with Indycar, signed back in June 2021, is effective immediately. This all comes after Motorsport Games sold their NASCAR license to iRacing, and BTCC also terminated its license with the company effectively immediately.
The company is in millions of dollars in debt, and with the loss of funds left and right, the future still does not look bright for the gaming company.
